2020 (2) TMI 1337 - HC - Companies Law

Permission for withdrawal of petition - Maintainability of petition - availability of equally efficacious alternative remedy available of approaching the National Company Law Tribunal - Sections 241 242 read with Section 430 of the Companies Act 2013 - HELD THAT - The petitioner seeks leave to withdraw the petition with liberty to approach the NCLT in terms of Section 244 of the Companies Act 2013 while also reserving the right to take such remedies as may be available in law in case NCLT refuses to grant waiver to the petitioner under subsection 244 of the Companies Act 2013. The petition is dismissed as withdrawn with liberty as prayed for.

Summary

Issues:
1. Maintainability of a writ petition under Article 226 of the Constitution of India against corporate actions under the Companies Act, 2013.
2. Interpretation of Section 244 of the Companies Act, 2013 regarding the requirement for approaching the National Company Law Tribunal (NCLT).
3. Availability of alternative remedies under the Companies Act, 2013 for aggrieved parties.

Analysis:
The judgment addressed the issue of the maintainability of a writ petition under Article 226 of the Constitution of India against corporate actions governed by the Companies Act, 2013. The respondents contended that the petitioner should approach the National Company Law Tribunal (NCLT) as per Sections 241, 242, and 430 of the Companies Act, 2013, due to the corporate nature of the allegations. The petitioner, however, argued that they did not meet the requirements of Section 244 (1) (a) & (b) to file a petition before the NCLT, making it crucial to determine the interpretation of this provision.

Regarding the interpretation of Section 244 of the Companies Act, 2013, the petitioner's senior counsel highlighted that the petitioner did not satisfy the conditions specified in Section 244 (1) (a) & (b), making it seemingly impossible to approach the NCLT. In contrast, the respondent's senior counsel pointed out that the proviso to Section 244 (1) allows individuals not meeting these requirements to seek a waiver from the NCLT, emphasizing the availability of this alternative route for the petitioner.

Ultimately, the judgment noted that the petitioner sought to withdraw the petition with the liberty to approach the NCLT under Section 244 of the Companies Act, 2013, while reserving the right to pursue other legal remedies if the NCLT refused to grant the waiver. Consequently, the petition was dismissed as withdrawn, granting the parties the liberty to exercise their rights and contentions as per the law. The order concluded with the issuance of a dasti order under the signatures of the Court Master, finalizing the disposition of the case.