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2016 (10) TMI 1075 - Tri - Companies LawRelated Party transactions - non approval from the Central Government - Held that:- Prior approval sought to be obtained from the Central Government is interalia with an object to safeguard the interest of various stakeholders viz shareholders, creditors, suppliers, etc and also to bring in transparency in the corporate dealings with respect to related party transactions. In the present Application, the Applicants have not obtained approval from the Central Government for any of the related party transactions carried out for a period of almost 3.5 years which is mandatorily required as per the law. In the light of aforesaid facts, circumstances and discussions of the case and comments of RoC asking the Tribunal to consider the Application by putting the Applicants to strict proof since the Applicants have not mentioned clearly as to how the offences were made good, and in the interest of justice, the prayer as sought by the applicants is premature and we are not inclined to consider the same at this stage. Therefore, the applicants are directed to approach the Central Government for approval of each of the related party transactions, which were entered with Flyington Frighters Private Limited, in accordance with section 297 of the Companies Act, 1956 and they are at liberty to approach this Tribunal subsequently in accordance with law. Further, we also direct the Registry to forward a certified copy of this Order to the Chairman, SEBI, Mumbai for appropriate action as deem fit in view of the facts of the case and quantum of money involved moreso the Applicant Company being a Listed Company. In terms of above, the present Company Application is disposed off accordingly.
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