The Supreme Court on Monday accepted the unconditional apology of National Company Law Appellate Tribunal member technical Alok Srivastava and dropped the contempt proceedings against him. Meanwhile, the top court also slapped a fine of Rs 1 crore upon Deepak Chhabria, who had to step down as Executive Chairman of Finolex Cables after the apex court set aside the order of NCLAT. Meanwhile, the top court was apprised that NCLAT judicial member Rakesh Kumar has tendered his resignation.
A bench headed by Chief Justice of India DY Chandrachud and also comprising judges JB Pardiwala and Manoj Misra noted the technical member has tendered an unconditional apology and stated that it doesn’t wish to take this matter to a further stage.
The top court held that NCLAT has acted in wilful defiance of the top court’s order. The top court asked Deepak Chhabria to pay Rs 1 crore to the PM’s Relief Fund and the scrutinizer to give Rs 10 lakh to the PM’s Relief Fund.
Deepak Chhabria has stepped down as an executive chairman of Finolex Cables after the Supreme Court struck down the NCLAT order. In the last hearing, the Supreme Court asked National Company Law Appellate Tribunal judicial member Rakesh Kumar and technical member Alok Srivastava to show cause why contempt of court proceedings be not initiated against them for breaching its order and delivering a judgement.
The court asked them to appear before it on October 30. The top court has also set aside NCLAT October 13’s judgement relating to Finolex Cable AGM.
Solicitor General Tushar Mehta, appearing on behalf of the member, technical NCLAT, stated that he had tendered an unconditional apology. Senior Advocate PS Patwalia, appearing for other members, said that the track record of the judicial member is completely unblemished. SC went through CCTV footage of the NCLAT proceedings.
The top court noted that on October 13, it passed an order directing NCLAT to defer its order on the Finolex Cable AGM matter. The top court noted that, despite this, the NCLAT bench proceeded with its order.