1. This Company Appeal arises out of an order passed by the Company Law Board, rejecting an application filed by the appellant seeking leave to file a rejoinder to the counter filed by the fifth respondent before the Company Law Board.

2. Heard Mr.P.J.Rishikesh, learned counsel for the appellant, Mr.P.H.Arvind Pandian, learned Senior Counsel for the fourth respondent and Mr.R.Shankar Narayanan, learned counsel appearing for the fifth respondent. Notice to respondents 1 to 3 is dispensed with for the following reasons:-

“(i) The second respondent already remained ex parte even before the Company Law Board, after having sold his shares to the fourth respondent; and

(ii) Respondents 1 and 3 have no conflict of interest with the appellant, and they are represented by the same counsel.”

3. Without getting into any factual details, the short question of law that arises for consideration in this appeal is as to whether one of the respondents in a petition before the Company Law Board under Sections 397 and 398 is entitled to file a reply to the counter filed by a co-respondent or not.

4. In so far as the procedure to be adopted by the Company Law Board for hearing and deciding petitions under the Companies Act, are concerned, it is governed by the Company Law Board Regulations 1991. Regulation 11 indicates that all petitions filed before the Company Law Board are to be in writing. Regulation 13 states that the general heading in all proceedings are to be in Form-1 in Annexure-II. Regulation 14 prescribes the procedure for filing the petition. Regulation 15 indicates the method of presentation and scrutiny of petitions. Regulation 16 deals with the contents of the main petition and Regulation 17 deals with the contents of interlocutory applications. Regulation 22 enables each respondent in a petition before the Company Law Board to file a reply along with the documents on which he relies upon. Regulation 23 enables the petitioner before the Company Law Board to file a counter reply to the reply filed by any respondent. Regulations 22 and 23 deserve to be noted and hence they are extracted as follows:-

"22. Filing of reply and other documents by the respondents -(1) Each respondent intending to contest the petition shall file, in triplicate, the reply to the petition and the documents relied upon with the office of the Bench within such period as may be fixed by the Bench but not exceeding fifteen days of service of petition upon him.

(2) In the reply filed under sub-regulation (1), the respondent shall specifically admit, deny or explain the facts stated by the petitioner in his petition and may also state such additional facts as may be found necessary for the just decision of the case. The reply so filed shall be signed and verified in the manner as provided in regulation 14.

(3) The documents referred to in sub-regulation (1) shall also be filed along with the reply and the same shall be marked as Annexures R1, R2, R3 and so on.

(4) The respondents shall also serve a copy of the reply along with the document mentioned in sub-regulation (1) duly attested to be true copies on the petitioner or his authorised representative, if any, and file proof of such service with the Office of the Bench.

(5) The Bench may, if so satisfied, allow filing of the reply after the expiry of the prescribed period, on sufficient cause being shown.

23. Filing of counter-reply by the petitioner -Where the respondent states such additional facts as may be necessary for the just decision of the case under sub-regulation (2) of regulation 22, the Bench may allow the petitioner to file a counter-reply to the reply filed by the respondent. The procedure laid down in regulation 22 shall apply, mutatis mutandis, to the filing of such counter-reply."

5. Apart from the above Regulations, there is also one more Regulation viz., Regulation 44 which confers inherent powers upon the Company Law Board, to make such orders as may be necessary for the ends of justice or to p