Kiran is a recently qualified lawyer who intends to appear before the National Company Law Tribunal (NCLT). Advise her on basic principles that shall be kept in mind while drafting of applications and petitions before NC

CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2022
Kiran is a recently qualified lawyer who intends to appear before the National Company Law Tribunal (NCLT). Advise her on basic principles that shall be kept in mind while drafting of applications and petitions before NCLT.

Answer & Explanation:

Before any professional commences drafting of any Petition, Written Statement, Replication/Rejoinder or Miscellaneous application (cumulatively called pleadings) or an Interlocutory application before the NCLT, it is absolutely necessary to keep in mind the provisions of Companies Act, 2013, Code of Civil Procedure, Limitation Act, Indian Evidence Act, National Company Law Tribunal Rules, 2016 and Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 and also procedural laws and certain basic and fundamental principles of drafting and pleadings. As per Order 6, Rule 2 of CPC every pleading shall contain only a statement in a concise form of material facts on which the party is relying upon. However, text of documents or evidence in the form of Agreement/MOU, Letters, e-mails, Negotiable instruments, Deeds, written documents or well settled position of law need not be elaborated in the pleadings but only reference is required to be made. Every pleading should not contain arguments. Further, (a) every pleading shall be divided into paragraphs numbered consecutively, catch allegation should be in a separate paragraph (b) dates, sums and numbers shall be expressed in a pleading in figures as well as in words. However, as per Order 6 Rule 4 of CPC, in all cases where the party alleges (a) misrepresentation (b) fraud (c) breach of trust (d) willful default (e) undue influence, the party alleging any of these must state clearly and specifically time, date month or year when any of the aforesaid happened - however, merely vague allegations are not sufficient and adequate and the court will not take cognizance. Before any one proceeds to commence drafting, it is absolutely necessary to gather information/documents/papers by having extensive discussions with the clients. The information could be gathered by asking the questions on the following points: Whether all Factual Details have been taken out Whether basic details of the parties have collated All Evidence Necessary for Drafting Appointment of Additional Directors Cessation of Office of Existing Directors Removal of Promoter Directors Illegal Transfer of Shares / Removal of Directors Information can be obtained under Right to Information Act. 2005 As per Order 6 Rule 14 of CPC, every pleading shall be signed by the party and his pleader, if any, provided that where a party pleading is, by reason of absence or for other good cause, unable to sign the pleading, it may be signed by any person duly authorized by him to sign the same or to sue or defend on his behalf. The authorization to sign the pleadings could be either by way of (a) Board resolutions in case of body corporate or (b) Power of Attorney duly executed. Generally, the rules prescribe the format of petition or application but does not prescribe the format for filing of Written Statement/Reply or Rejoinder or Replication. Therefore, the contents of petition must always be set out under various headings or sub-headings in accordance with the formal prescribed - otherwise, the Registry of the NCLT or NCLAT may raise objection and petition may not be listed for admission, hearing and consequently, grant of interim relief may be delayed. The petition must adhere to the following:- Form prescribed Set brief description of each of the petitioner and respondents Narrate the Facts.

Topics: National Company Law Tribunal (NCLT)

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