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2020 (4) TMI 276 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHIPower of the tribunal to pass appropriate orders - Impleadment of the appellants(s) as party (including auditors) - ‘IL&FS Group Companies’ has suffered majority debt obligation of ‘IL&FS’ - Section 242 of the Companies Act, 2013 - whether this Appellate Tribunal should interfere with the impugned order dated 9th August, 2019 whereby the Appellants have been impleaded as party Respondents? HELD THAT:- In similar case of UNION OF INDIA, MINISTRY OF CORPORATE AFFAIRS VERSUS GITANJALI GEMS LTD. AND ORS., SURESH KUMAR BHUTANI, PARESH PRAVIBHAI RATHOD, HARESH V. RAJLAL SHAH, KETAN CHANDRAKANT SOLANKI, MANISH LALIT DANI, SANKET BIPIN SHAH, HIMANSHU PRAVINCHANDRA TRIVEDI, JYOTI B VORA, SUDHIR AMBALAL MEHTA AND CHANDRAKANT KANU KARKARE [2018 (9) TMI 678 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI] while discussing wide powers of the Tribunal under Sections 241-242 of the Companies Act, 2013, conjointly read with Section 246 and Sections 337 to 341, this Appellate Tribunal held that During the process of investigation and pendency of an application under Section 241(2) read with Section 242 of the Companies Act, 2013 and in view of powers conferred under Section 221, the Tribunal is not only empowered to pass appropriate interim order against the Company but also against any person or individual, including the order to desist. The Tribunal is empowered to pass order under Section 242 of the Companies Act, 2013 in a petition under Section 241(2) if it forms opinion that the affairs of the company have been conducted in a manner prejudicial to the public interest. Once such opinion is formed by the Tribunal, it may pass any order as it deem fit and proper - The various acts prejudicial to public interest have been highlighted which has cascading impact on various sectors of economy - The Department of Economic Affairs which is responsible for the financial stability of economy and in the Country too has raised Red Signals of the likely collapse of ‘IL&FS’ and has expressed its deep concern on the impact of Indian Economy in its Confidential Note dated 30th September, 2018. Before passing any appropriate order in public interest and to save the economy of the Country from collapse, if the Tribunal is of the opinion that it requires to give appropriate hearing to the concerned parties, including those who audited ‘IL&FS’ and/ or those who have managed or were concerned with ‘IL&FS’ or its Group Companies, it cannot be held to be illegal - Appeal dismissed.
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