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2013 (10) TMI 60 - HC - Companies LawPowers of Company Law Board - Whether the Company Law Board, after having granted leave to the parties to the proceedings to institute a civil suit, could have usurped the powers of the Civil Court to find out whether the transfer of right in an immovable property was right or wrong - Held that:- though the Company Law Board was entitled to decide the validity of the transfer, despite granting leave to the parties to go to the Civil Court, it should not have decided the same, without impleading the appellant as a party. The benefit of the order of the Company Law Board has enured to both respondents 1 to 4 and respondents 6 to 8 alike. This is why, respondents 6 to 8 have supported the stand taken by respondents 1 to 4 in the above appeal. In this process, a Public Financial Institution viz., the State Bank of India, has become the casualty. Since this cannot be allowed to happen, I am of the view that the opportunity given to respondents 10 and 11, cannot be considered as sufficient to protect the interests of the appellant herein. The appellant, by itself, is entitled to have an opportunity to satisfy the Company Law Board that they have bona fide entered into a transaction. - Decided in favour of appellant.
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