NCLAT Orders NCLT to Consider Former Gensol Director Harsh Singh's Argument Against Probe [Read Order]

The National Company Law Appellate Tribunal (NCLAT) has directed a case put forth by Harsh Singh, a former independent director of Gensol Engineering, to the National Company Law Tribunal (NCLT) for review and conclusion. Singh is arguing against an investigation that was ordered against him and other employees of the organization.

On May 28, the NCLT's Ahmedabad bench had already mandated an inquiry against Gensol Engineering's present and past officers. This comprised the company's chartered accountant, company secretary, important managerial staff, and board members. The decision was issued in response to SEBI's accusations of financial mismanagement against the company's co-founders, Anmol Singh Jaggi and Puneet Singh Jaggi. Singh then left the board and filed a complaint with the appeal tribunal.

Singh argued that since he was an independent director, he should not be held accountable for board decisions because he had no influence on day-to-day operations. He added that even though he was a practicing advocate, the NCLT's ruling was passed without consulting him.

The Appellant himself has provided the order of coordinate bench of the Court passed in Comp. App. (AT) No. 127 of 2025 & Comp. App. (AT) No. 128 of 2025 on 04.06.2025, wherein the Appellant Companies have been directed to approach the Tribunal with a consequential direction to the Tribunal to pass appropriate order after considering their objections.

A two-member bench of Justice Mohammad Faiz Alam Khan, Member (Judicial) and Mr. Naresh Salecha, Member (Technical) is not inclined to interfere in the impugned ad-interim order passed by the tribunal. However, as the Impugned Order is purely of adinterim nature and the Appellant has already appeared before the tribunal, the Appellant would be at liberty to file objections pertaining to the stay application or for vacation of ad interim / Impugned Order within a very short period to say withing two days and if such application and objections are filed the Tribunal would consider the same and pass a reasoned order.

The appeal is finally disposed of with a direction that the Appellant who has already appeared before the Tribunal may submits its objection to the interim stay application or may file a stay vacation application within two days from today taking all the grounds.

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