NCLT seeks reply on Jagran Prakashan’s application for appointment of administrator
Next hearing scheduled for October 4
The National Company Law Tribunal (NCLT) has issued a notice on an application filed by Jagran Prakashan seeking the appointment of an administrator without supersession of the Board.
In the application, the company also sought permission for Jagran Prakashan’s Board to identify a qualified and independent professional in the capacity of a Chief Executive Officer, with further prayer that the term of Mahendra Mohan Gupta as the MD of the Company to continue till such CEO is appointed.
The Allahabad bench of NCLT sought responses from non-applicants in the matter within a week as the next hearing is scheduled for October 4.
The application was filed in a pending petition titled Mahendra Mohan Gupta and others vs Devendra Mohan Gupta and others under sections 241/242 and 244 of the Companies Act 2013
NCLT noted that as per the Regulation 26A of the Securities and Exchange Board of India, Regulation, 2015, a listed company is required to fill any vacancy in the office of Managing Director at the earliest, and not later than three months from the date of such vacancy.
“Since the present vacancy of MD is going to occur on 30.09.2023, as stated by the Counsel representing the Applicant, therefore the appointment in any case has to take place on or before three months in terms of the Regulation 26A of the SEBI Regulation, 2015,” the bench said.
The tribunal also directed that the parties would come out with a definite timeline in order to ensure that the appointment of the Managing Director takes place within a time bound manner, so that the vacancy on the post of the Managing Director does not continue indefinitely.
“Let the needful be done within the aforesaid stipulated period of one week,” the bench said while seeking a response from the parties.
