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D. Y. CHANDRACHUD, J. B. PARDIWALA, MANOJ MISRA
Orbit Electricals Private Limited – Appellant
Versus
Deepak Kishan Chhabria – Respondent
ORDER :
1. The National Company Law Tribunal1[“NCLT”] dismissed the application filed by the first respondent for the grant of interim relief by an order dated 31 December 2019. The first respondent is in appeal before the National Company Law Appellate Tribunal2[“NCLAT”]. Admittedly, no interim relief operated in favour of the first respondent during the pendency of the appeal.
2. The appeal has been heard and orders were reserved by the NCLAT on 21 September 2023. However, while reserving orders, the NCLAT has directed the parties “to maintain status quo as was available prior to EOGM dated 03.05.2019” till the judgement is delivered. No reasons have been indicated by the NCLAT even prima facie for issuing the interim order, particularly in the context of the fact that there was no interim relief operating since the dismissal of the application for interim relief on 31 December 2019. It is admitted that no relief was obtained by the first respondent in the proceedings before the Bombay High Court, as well.
3. In the circumstances, we vacate the interim direction as noted above. The Annual General Meeting (AGM) of the company, Finolex Cables Limited is to take place on 29 September 2
The court emphasized the need for justification in issuing interim directions and linked the appointment of the Executive Chairperson to the outcome of the pending appeal before the NCLAT.
Appeal – Limitation stops running on e-filing of appeal before NCLAT and not on presentation of physical copy – Date on which limitation begins to run is intrinsically linked to date of pronouncement....
Points of law : Principle which has been propounded by the NCLAT is rather novel to civil jurisprudence and betrays a lack of comprehension of basic legal principles.
Supreme Court emphasizes jurisdiction to enforce orders and ensure compliance during appellate proceedings.
Writ petitions challenging interim orders of NCLT are not maintainable; aggrieved parties must appeal to NCLAT.
(1) Appeal – Period of limitation – Any party which is aggrieved by decision of NCLT can file appeal before NCLAT – Statutory time limit of 30 days within which appeal can be preferred, is extendable....
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