NCLAT quashes NCLT order making MCA a party to all IBC proceedings

Allowing the plea filed by the MCA, a two-member bench of the appellate tribunal said the NCLT's direction was "beyond the power" and amounted to "imposition of a new rule in a compelling fashion".

The National Company Law Appellate Tribunal (NCLAT) has set aside an NCLT order to implead the Ministry of Corporate Affairs (MCA) as a party in all proceedings related to insolvency and company matters before it.

Allowing the plea filed by the MCA, a two-member bench of the appellate tribunal said the National Company Law Tribunal’s (NCLT’s) direction was “beyond the power” and amounted to “imposition of a new rule in a compelling fashion”.

Earlier, in an order on November 22, 2019 the principal bench of the NCLT had directed to make the MCA a party in all applications filed under