The Kerala High Court has ruled that a petitioner can contest a NCLT-imposed fine of ₹1 lakh per day for non-compliance, allowing time to appeal.
Kerala HC Challenges NCLT’s Non-Compliance Penalties
The Kerala High Court has held that a petitioner can challenge the NCLT's order imposing a fine of ₹1 lakh per day for non-compliance, even when the order is recorded as consent. The Court granted the petitioner additional time to file an appeal before the appellate tribunal.
This ruling indicates the courts' willingness to entertain challenges to regulatory penalties, particularly in circumstances where consent orders may seem to override a party's right to appeal. It opens a pathway for individuals and entities to seek redress against stringent penalties imposed for non-compliance.
Practitioners should be aware of this development, as it may impact strategies surrounding appeals and compliance-related matters in corporate law.
