NCLAT Allows Deloitte’s Appeal, Strikes Down NCLT Order in IL&FS Case Over Unauthorised Amendment

In a significant development in the IL&FS case, the National Company Law Appellate Tribunal (NCLAT) has allowed an appeal filed by the audit firm Deloitte, striking down an NCLT order against it. The National Company Law Tribunal (NCLT) had earlier allowed the government to make an unauthorized amendment to its petition seeking a ban on the audit firm. The NCLAT found that this amendment was not permissible under the law and had been allowed without following the due process. The appellate tribunal held that the NCLT had erred in allowing the amendment, which had adversely affected the rights of the appellant. By setting aside the NCLT's order, the NCLAT has provided a major procedural victory to Deloitte and has reinforced the importance of adhering to the prescribed legal procedures in insolvency and corporate law proceedings.