NCLAT has set aside an NCLT order to implead the corporate affairs ministry as a party in all proceedings related to insolvency and company matters before it.

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

Earlier, in an order on November 22, 2019, the principal bench of the National Company Law Tribunal (NCLT) has directed to make MCA a party in all applications filed under the Insolvency and Bankruptcy Code as well as the Companies Act before all benches, so that authentic record is available with the office for proper appreciation of the matters.

Rejecting the order, the NCLAT said: “The impugned order is an untenable one and the said order suffers from material irregularity and patent illegality.”