The Allahabad High Court has stayed a February 2026 notification that shifted scrutiny of cases from the Allahabad Bench of the National Company Law Tribunal (NCLT) to its Principal Bench in New Delhi.
The Court expressed concern that such a move could disrupt the functioning of regional benches and delay access to justice for litigants.
Background of the Case
The petition was filed by the Company Law Tribunal Bar Association, challenging an administrative order dated February 27, 2026. The order, issued by the Registrar of the NCLT Principal Bench, directed that scrutiny of cases filed before the NCLT Allahabad Bench be conducted jointly with the Principal Bench in New Delhi.
According to the Bar Association, this decision was unnecessary and discriminatory. They argued that the Registry of each bench is fully capable of handling scrutiny-a preliminary process where filings are checked for defects before being placed before the Bench.
The petitioners also raised concerns that shifting scrutiny to Delhi, whether online or otherwise, would lead to delays and complicate case processing.
The Division Bench, comprising Justices Saral Srivastava and Garima Prashad, closely examined the records and instructions submitted by the Union of India.
The Court noted that official data showed no backlog of cases pending scrutiny at the Allahabad Bench even before the impugned order was issued.
“The material placed before us indicates that there was no pendency of scrutiny at Allahabad at the relevant time,” the bench observed.
It further recorded that adequate staff, including a Deputy Registrar and Assistant Registrar, were already functioning at the Allahabad Bench and were competent to handle scrutiny work.
The Court also questioned the rationale behind transferring scrutiny to Delhi, especially when the local registry was fully operational.
In a sharp observation, the bench remarked that such decisions—if taken merely on the request of members of the Bar—could undermine the very purpose of establishing multiple benches of the tribunal.
“The action may disturb the purpose of establishing various benches, as litigants may either be deprived of justice or face delay,” the Court noted.
After considering the submissions and records, the High Court held that the petitioner had made out a prima facie case.
Accordingly, the Court:
- Stayed the operation of the notification dated February 27, 2026 until further orders.
- Allowed the Registry of the NCLT Allahabad Bench to resume independent scrutiny of fresh cases and applications.
- Directed that matters be placed before the concerned Bench without being sent to the Principal Bench in New Delhi.
The Court also granted two weeks’ time to the respondents to file a counter affidavit, with a further week allowed for rejoinder.
Case Details
Case Title: Company Law Tribunal Bar Association vs. Union of India & Others
Case Number: Writ - C No. 14929 of 2026
Judges: Justice Saral Srivastava and Justice Garima Prashad
Decision Date: April 30, 2026
