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2004 (7) TMI 355 - SC - Companies LawWhether the statutorily required members of the company have approved the scheme or not? Whether the transfer of shares by the MIL to the appellant was in contravention of the interim order of injunction granted by the City Civil Court? Held that:- Appeal allowed. There was no statutory need to have decided this issue while dealing with the application for approval of the Scheme under section 391 of the Companies Act, indeed, that issue did not arise before the Company Court. That apart basic principles of natural justice are violated by the courts below in deciding an issue against the appellant in proceedings to which the appellant was not even party. By this finding, the appellant’s right to hold shares in the MIL gets affected and even the question of violation of the terms of injunction on facts of this case, was not a matter before these forums. Therefore, the findings given by the Company Court as affirmed by the Appellate Court as to the violation of the injunction order also as to the validity of the transfer and the title of the appellant over the shares held by it in the MIL being findings which are made beyond the jurisdiction of the courts below, no hesitation in setting aside these findings. This issue as to the violation of injunction order or any other issue pertaining to the validity of title of the shares transferred in favour of the appellant by MIL is a matter if at all, to be decided by the City Civil Court in the pending suits if it arises for consideration.
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