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SUPREME COURT OF INDIA
Sanjay Kishan Kaul, Abhay S. Oka, JJ.
Indiabulls Housing Finance Limited – Appellant
Versus
Iirf India Realty Xii Limited & Ors. – Respondents
Civil Appeal No. 9062 of 2022
Decided On : 12-12-2022
Status Quo Order - National Company Law Appellate Tribunal - Company Appeal (AT) (INS.) No.1472/2020 - The court set aside the status quo order passed by the NCLAT Bench and directed the appeal to be placed before a Bench presided over by the Chairman.
Fact of the Case:
The appeal sought to assail the status quo order passed by the NCLAT Bench in a proceeding relating to the removal of the Resolution Professional and his replacement by another Resolution Professional. The court had previously passed certain directions for the deposit of monies and execution of sale deeds in the same matter.
Finding of the Court:
The court found the status quo order passed by the NCLAT Bench to be inappropriate and almost bordering on contempt. It set aside the order and directed the appeal to be placed before a different Bench presided over by the Chairman.
Issues: The main issue was the propriety of the status quo order passed by the NCLAT Bench and its impact on the implementation of the court's previous order.
Ratio Decidendi: The court's decision was influenced by the conduct of the NCLAT Bench, which it deemed inappropriate and almost contemptuous. The court emphasized that grievances about the implementation of its orders should be addressed directly to the court.
Final Decision: The court set aside the status quo order and directed the appeal to be placed before a different Bench presided over by the Chairman.
ORDER
Taken on Board.
1. This is an appeal by respondent No.1/original appellant in CA No.7050/2022.
2. Issue notice.
3. Notice is accepted by learned counsel for the respondent.
4. We have heard learned counsel for parties in this appeal along with hearing Miscellaneous Application No.2064/2022 in Civil Appeal No.7050/2022.
5. The appeal seeks to assail the order dated 06.12.2022 by which the status quo order passed by a Bench of National Company Law Appellate Tribunal (NCLAT). This was in a proceeding relating to removal of the Resolution Professional and his replacement by another Resolution Professional.
6. We may notice that in the Civil Appeal No.7050/2022 which was already disposed of by us certain directions were passed for the monies to be deposited and sale deeds to be executed.
7. We fail to appreciate how a status quo order could have been passed by a Bench of the NCLAT seeking to impede the implementation of the order of this Court. If there was a grievance about the implementation of the order of the Court, only this Court could have got into it. We consider the conduct of the Bench not only inappropriate but almost bordering on contempt.
8. We strongly deprecate the order passed by the NCLAT Bench.
9. We thus, set aside the order of status quo in those proceedings and insofar as that appeal i.e. Company Appeal (AT) (INS.) No.1472/2020, is concerned, the same be placed before a Bench presided over by the Chairman.
10. The Civil Appeal accordingly stands disposed of.
Courts emphasize the importance of addressing grievances about the implementation of their orders directly to the court, rather than seeking alternative remedies.
Supreme Court emphasizes jurisdiction to enforce orders and ensure compliance during appellate proceedings.
The court declined to interfere with the order of the National Company Law Appellate Tribunal.
The court reiterated that interim orders protecting rights pending final adjudication are crucial, and only appealable orders determining rights of parties fall under the Companies Act, 2013.
The court affirmed the importance of procedural compliance under Rule 89 of the National Company Law Tribunal Rules, 2016, highlighting that failure to adhere to such rules affects litigants' rights ....
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