COMPANY LAW BOARD
KANTHI NARAHARI, J.
T. Balan -Appellant
Versus
Unicentre Agencies & Engg. (P.) Ltd. -Respondent
CA. No.44 of 2009 and CP No.7 of 2004
Decided On : 09-11-2009
R. Varadarajan
1. The application is filed under section 634A of the Companies Act, 1956 seeking directions from this Bench to enforce the compliance of its order dated 23.10.2008 against the respondents.
2. Shri R. Varadarajan, learned counsel, for the applicants submitted that originally the applicants/petitioners preferred the CP 7 of 2004 by invoking the provisions of sections 397/398 read with 402 of the Companies Act, 1956 against the respondents seeking various reliefs prayed for in the said petition including restoration of properties situated at Gummudipoondi to the extent of 4.01 acres of land. After completion of pleadings as well as elaborate arguments of both the sides this Bench passed final order on 23.10.2008 directing the respondents therein to do the following acts viz.
(a)The Company (1st respondent) would be entitled for 40% of the total extent of the properties, registered in the name of the second respondent, accounting for 1.60 acres out of the total extent of 4.01 acres of land. The sale of properties having found to be irregular and oppressive must be set aside, in the paramount interest of the Company and its shareholders, upon which 1 acre and 60 cents of the land shall be restored to the Company;
(b)After such restoration, the Company shall be enabled to sell the said extent of 1 acre and 60 cents, free of any encumbrances in accordance with law and deal with the sale proceeds, as per the collective wisdom of the shareholders;
(c)The statutory auditor will duly quantify the amounts to be brought in by the second respondent on account of Kuwait operations, for the period between 06.09.1991 and 05.11,1993 which will be credited to the account of the Company;
(d)The whole process shall be completed within six months, to be ensured by both parties;
(e)The company after meeting all its existing liabilities is at liberty to distribute the surplus amount among its shareholders in proportionate to their shareholding in the Company.
3. The order of this Bench is required to be complied within a period of six months. However, the respondents have not complied with this order as per the time stipulated by this Bench. The learned Counsel further submitted that the third party (purchaser of the property) has filed an appeal before the High Court only in respect of prayer (a) & (b) of para 2 of this application. In respect of other reliefs in the main order of this Bench dated 23.10.2008 is concerned no appeal has been filed so far to the best knowledge of applicants/petitioners and me order has attained as finality. Hence the learned Counsel requested this Bench to take appropriate action against the respondents for wilful disobedience of the orders passed by this Bench on 23.10.2008 as per the provisions of the Companies Act 1956.
4. Heard the learned Counsel for the applicants/petitioners. After filing this company application counsel for the applicants served the notices on the respondents 1, 2, 3 and 6, but the notices sent to the respondents 1, 2, and 3 have been retimed back with the postal remark 'refused' and respondent No. 6 returned with remark 'unclaimed'. It is well settled law that the refusal, amounts to service of notice. Since the order of this Bench attained its finality in respect of other reliefs mentioned under (c) & (d) above, this Bench cannot remain silent when the order of this Bench has been wilfully disobeyed. By virtue of Regulation 47 of the CLB Regulations 1991 any bench of the CLB being deemed to be a court for the purpose of prosecution of a person disobeying its order and in the light of section 10 of the Contempt of Courts Act, 1971, the High Court has jurisdiction to exercise the power of dealing with contempt of sub-ordinate courts in the same manner as it can deal with contempt of the Hon'ble High Court itself. The Hon'ble High Court can take cognisance of contempt of the sub-ordinate courts, where such contempt is not an offence punishable under the IPC. The Hon'ble High Court being the appell