# In the matter of Shailendra Singh Vs. Nisha Malpani & Anr. Company Appeal (AT)(Ins) No.945 of 2020

> NCLAT judgment dated 2021-11-22. Citation: TCN-2021-NCLAT-00044. The case involves an appeal against an order dated 23.09.2020 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 22 Nov 2021
- **Citation:** TCN-2021-NCLAT-00044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shailendra-singh-vs-nisha-malpani-anr-company-appeal-8feeefee

## Summary

### Background

The case involves an appeal against an order dated 23.09.2020 passed by the Adjudicating Authority (National Company Law Tribunal, Principal Bench, New Delhi) in a Contempt Application No.A-01(PB) of 2020 in CA-1081/2019 in (IB)-560(PB)/2017. The appellant, an advocate, was appointed by the erstwhile Interim Resolution Professional (IRP) for the Corporate Debtor and claimed unpaid fees. The Adjudicating Authority dismissed the contempt application, stating that the IBC is devoid of contempt jurisdiction. The appellant contends that the NCLT has the power to punish for contempt under Section 425 of the Companies Act, 2013.

## Facts

Shailendra Singh, an advocate, was appointed by the Interim Resolution Professional (IRP) of a Corporate Debtor in IB-560 of 2017. He claims that fees of Rs. 2,42,000/- from 9.8.2018 to 4.9.2018 are pending. The IRP was replaced by Nisha Malpani, the 1st Respondent. The Appellant filed CA No. 1081/2019 to clear his professional dues. The Respondent assured the Tribunal on 07.11.2019 that necessary steps would be taken to pay the arrears. The Tribunal directed the Respondent to pay the arrears within two days. The Respondent failed to comply with the order. The Appellant filed Contempt Application No.A-01(PB) of 2020 under Section 425 of the Companies Act, 2013, r/w Section 12 of the Contempt of Courts Act, 1971, and Rule 11 of NCLT Rules. The Adjudicating Authority

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## Issues and analysis

### Issue 1: Whether the National Company Law Tribunal (NCLT) has the power to initiate contempt proceedings …

**Ratio:** The NCLT, as an Adjudicating Authority, has the same jurisdiction, powers, and authority

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**Reasoning:** The NCLAT reasoned that the NCLT and the Appellate Tribunal have the same jurisdiction,

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**Interpretation:** Section 425 of the Companies Act, 2013, empowers the Tribunal and the Appellate

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**Application:** The NCLAT applied this principle to the case, holding that the Adjudicating

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## Parties

- **Judges:** M. Venu…; V. P. S…; +1 more
- **Appellants:** Shailendra…
- **Respondents:** Nisha Ma…
- **Advocates:** Muskan…; Prerna…; +4 more

## Timeline

- **2017-01-01 — Appointment of…**: Shailendra Singh appointed by the Interim Resolution Professional (IRP) for the Corporate…
- **2018-08-09 — Pending…**: Fees of Rs. 2,42,000/- from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(1) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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