High Court of Delhi
SANJEEV SACHDEVA, J.
Deepak Khosla
Versus
Hon’ble Company Law Board & Others
Cont. Cas(C). No. 959 of 2013
Decided on : 12-08-2014
Contempt of Court - Order dated 08.10.2009 - W.P.(C) No.7651 of 2009 titled Deepak Khosla & another Versus Union of India & others - Regulation 18(3) of the Company Law Board Regulations, 1991, Circular No.1/2014 dated 13.01.2014, Circular dated 26.10.2009 - The court discussed the provisions of Regulation 18(3) of the Company Law Board Regulations, 1991, and the circulars issued by the Delhi High Court, and their compliance in relation to the filing of vakalatnamas. The court also referred to the Supreme Court's decision in UDAY SHANKAR TRIYAR V. RAM KALEWAR PRASAD SINGH, (2006) 1 SCC 75, which established that procedural defects and irregularities which are curable should not be allowed to defeat substantive rights or to cause injustice. The court emphasized that the filing of a deficient vakalatnama by a party to a proceeding would not make the party or its advocates liable for contempt of Court.
Fact of the Case:
The Petitioner filed a Contempt Petition alleging contempt of an order dated 08.10.2009 passed by the Division Bench of the Court. The Petitioner contended that the Respondents wilfully and deliberately violated the order by not complying with the directions regarding the filing of vakalatnamas.
Finding of the Court:
The court found that the filing of a deficient vakalatnama by a party to a proceeding would not make the party or its advocates liable for contempt of Court. The court also noted that the Respondent Company Law Board had issued circulars mandating compliance with the directions issued by the Delhi High Court.
Issues: The issues revolved around the alleged wilful disobedience of the order dated 08.10.2009 and the filing of vakalatnamas not in accordance with the directions contained in the said order.
Ratio Decidendi: The court emphasized that procedural defects and irregularities which are curable should not be allowed to defeat substantive rights or to cause injustice. The court also highlighted that the filing of a deficient vakalatnama by a party to a proceeding would not make the party or its advocates liable for contempt of Court.
Final Decision: The court dismissed the Petition, stating that no ground was made out to initiate proceedings against the Respondents for any alleged wilful disobedience of the order dated 08.10.2009.
Please provide the full legal document content (inside
Sanjeev Sachdeva, J.
1. The Petitioner has filed the present Contempt Petition alleging contempt of order dated 08.10.2009 passed by the Division Bench of this Court in W.P.(C) No.7651 of 2009 titled Deepak Khosla & another Versus Union of India & others.
2. It is contended that by order dated 8.10.2009 had directed the Registry of this Court, the Courts subordinate to this Court and the Tribunals and Foras in Delhi that proper scrutiny of vakalatnama filed should be effected and vakalatnama which are not properly executed be not taken on record. None of the Respondents herein were parties to the said Petition.
3. It is contended by the Petitioner that the Respondents wilfully and deliberately violated the order dated 08.10.2009 and as such have made themselves liable for being proceeded with under the Contempt of Court Act.
4. The Petitioner has arrayed the Company Law Board through its Secretary as Respondent No.1. Respondents No. 2 to 4 are corporate entities against whom the Petitioner has various litigations. Respondents No. 5 to 10 are Directors of one or the other corporate entities arrayed as Respondents No. 2 to 4. Respondents No. 11 to 20 are advocates who are either partners or advocates of law firms representing one or the other parties arrayed as Respondents No. 2 to 10.
5. It is contended by the Petitioner that Respondent No.1, the Company Law Board is a Tribunal, subordinate to the Delhi High Court and despite service of the order dated 08.10.2009, no steps were taken by the Respondent No.1 to comply with the directions contained in the said order. Qua Respondents No. 2 to 10, it is contended that despite being aware of the directions contained in order dated 08.10.2009, they filed vakalatnama not in accordance with the directions contained in order dated 08.10.2009 and as such have violated the said order.
6. Respondents No.11 to 20 have been arrayed in the Petition in their capacity as advocates for the Respondents 2 to 10. It is contended that Respondents No.11 to 20 appeared before the Court without filing an appropriate vakalatnama and as such their conduct amounted to contempt of Court.
7. During the submissions it was contended that Respondents No.11 to 20 were also liable as they are stated to have given legal advice and the said Respondents should have known the law and should have advised correctly. It is further contended that the Respondents despite being put to notice by the Petitioner to annex the Board resolution authorizing the vakalatnama failed to do so and as such the same amounted to wilful breach of order dated 08.10.2009, thus, they be liable for having committed the contempt of said order.
8. The Petitioner has contended that Co. Pet. No.130/2013 was filed before the Company Law Board by the Petitioner seeking investigation into the affairs of various companies.
9. It is contended that an application was filed by Respondent No. 2 being CA No. 134 of 2013. The Petitioner requested for return of the said application on the ground that the vakalatnama was not appended with the authority of the executant of the same. It is contended that another company application was filed by the other Respondent in similar fashion.
10. This Court before considering the question of issuance of notice to any of the Respondents directed the Bench Officer of the Company Law Board to file an affidavit explaining the practice and procedure adopted in the Company Law Board in relation to the issues raised by the Petitioner in the Petition.
11. The Bench Officer of the Company Law Board has filed an affidavit dated 22.01.2014. The Bench Officer in the said affidavit has placed on record the procedure in respect of the filing of memorandum of appearance and vakalatnama in terms of regulation 18(3) of the Company Law Board Regulations, 1991. In the affidavit, it is stated that whenever an objection is raised by the management of the company or the party to the proceedings or where it feels necessary,
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.