The Statutory Power
Section 419(3) provides that the President of the NCLT may, on the application of a party or on his own motion, transfer any case from one bench to another. The power is exercisable for administrative reasons, for the convenience of the parties, or to secure the ends of justice. The President’s order is administrative, but it determines the forum in which the case will be heard, and it is therefore subject to judicial review.
The Grounds for Transfer
The grounds include: the petitioner’s choice of forum being oppressive or vexatious; the convenience of the majority of the parties and witnesses; the pendency of a related case before another bench; the risk of conflicting orders; the lack of an appropriate technical member at the original bench; and the interests of justice. A transfer application should identify the specific ground and support it with evidence.
The Petitioner’s Forum Choice
The petitioner’s choice of forum is not lightly disturbed. The NCLT has held that a transfer application should not be used to forum-shop or to delay the proceedings. The applicant must establish that the transfer will serve the interests of justice, not merely that it will be more convenient for the applicant.
The Transfer of Connected Cases
Where two or more cases arising out of the same transaction are pending before different benches, the President may transfer them to a single bench to avoid conflicting findings. The transfer of connected cases is a common ground, and the applicant should identify the connected cases and the risk of inconsistent orders.
The Practical Timing
A transfer application should be filed before the original bench has substantially heard the matter. A belated application may be dismissed as an afterthought. The applicant should also consider whether the transfer will delay the proceedings, and whether the delay is justified by the expected benefit.
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