NCLT Can Grant Ex-Post Facto Approval To Criminal Complaints Filed Against Former Management With Adequate Reasons: NCLAT
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the Adjudicating Authority is empowered to grant ex-post facto approval of criminal complaints filed against the Ex-management by providing adequate reasons. The present appeal has been filed against an order passed by National Company...
The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan and Mr. Barun Mitra (Technical Member) has held that the Adjudicating Authority is empowered to grant ex-post facto approval of criminal complaints filed against the Ex-management by providing adequate reasons.
The present appeal has been filed against an order passed by National Company Law Tribunal (NCLT) by which it allowed an application filed by the Liquidator and gave ex-post facto approval to criminal complaints filed against the Ex-management.
The Appellant submitted that for the ex-post facto approval granted in the impugned order no reasons have been given nor any special facts have been mentioned due to which ex-post facto approval could have been granted.
Per contra, the Respondent submitted that the Adjudicating Authority itself in an earlier order passed on 28.04.2022 has permitted the Liquidator to pursue all litigations listed in Annexure 'C-2' and consequential proceedings civil/ criminal, which clearly authorise the Liquidator to file criminal complaint.
The Tribunal observed that the NCLT provided reasons while passing the impugned order. By an earlier order, the NCLT had already permitted the liquidator to initiate civil and criminal proceedings pursuant to which criminal complaints were filed against the ex-management. No error was committed by the NCLT in granting ex-post facto approval to the criminal complaints. Accordingly, the present appeal was dismissed.
Case Title: Pankaj Tandon Versus Isolux Corsan India Engineering & Construction Pvt. Ltd. Through its Liquidator CA Rajeev Bansal
Case Number: Company Appeal (AT) (Insolvency) No. 201 of 2025
Order Date: 02/09/2025