Gujarat HC
AHMEDABAD: The Gujarat high court has said that judges yielding to intimidation or pressure from lawyers and recusing themselves from cases only fuels “browbeating, forum shopping, and attempts to influence the bench”. Justice Niral Mehta made the remark while quashing two recusals by Ahmedabad benches of National Company Law Tribunal (NCLT) and two subsequent transfer orders by NCLT president in New Delhi that shifted a high-stakes corporate dispute to Mumbai. The case involved ArcelorMittal Nippon Steel India Ltd (AM/NS) and a few creditors of Essar Steel India Ltd, whose resolution plan was approved in 2019. Lawyers representing the creditors allegedly pressured NCLT Ahmedabad-1 to move the matter. On Jan 9, 2024, that bench recused itself. Another bench – Ahmedabad-2 – followed suit in April 2024, also citing pressure. The NCLT president in New Delhi then issued two transfer orders, sending the case to Mumbai. AM/NS challenged the sequence in the high court, accusing the creditors and their counsel of “browbeating the bench” and “forum shopping”. The HC ruled that NCLT president has no authority to transfer cases from one state to another through administrative orders. It directed NCLT Ahmedabad to resume hearing the case – virtually if needed. Justice Mehta stressed judges and members are bound by oath to decide impartially, without fear or favour, affection or ill will. The court condemned what it called an “increasing” trend of parties trying to pressure judicial officers when rulings don’t meet their expectations. “Judicial magnanimity should never be mistaken for weakness,” the judge said. “If courts and tribunals begin to succumb, it will only embolden those who seek to manipulate judicial proceedings.”
