2020 (7) TMI 749 - KERALA HIGH COURT - Corporate Laws

Head Note / Extract:
Seeking directions to restrain the 2nd petitioner from exercising powers of Managing Director of the company and to change the signatories of the bank accounts of the companies - seeking to appoint an Advocate Commissioner to act as an interim Managing Director - Challenge on the ground that the running company is brought to a standstill by the action of the NCLT interdicting financial transactions till 7.8.2020, without any justification and without hearing the counsel appearing for the company and the Managing Director - HELD THAT:- It is an admitted fact that the company petitions nine in number were pending before the NCLT. In the impugned order itself, the NCLT refers to the prayers in the company petitions and post the matter for hearing of the I.A. to 7.8.2020. The learned counsel for the petitioners has submitted that the proper course of action is to file an appeal before the NCLAT. It is submitted that such a course of action is presently rendered impossible due to the prevailing pandemic situation in the country and the petitioners are disabled from travelling to Delhi to prefer the appeal in view of the restrictions and the rising number of cases in the country. Though it is contended by the learned counsel appearing for the respondents that the writ petitions are not maintainable without the NCLT on the party array, in the facts and circumstances of the instant cases, especially in view of Ext.P6 request for adjournment made by the counsel for the petitioners before the NCLT, the passing of an order interdicting all financial transactions by running companies would create serious prejudice to the company. The technical objection raised that the NCLT is not made a party to these proceedings, according to me, should not stand in the way of the consideration of these writ petitions in the peculiar circumstances prevalent at present. The petitioners should be permitted to carry out the dayto- day financial transactions as are necessary for the conduct of the companies - Petition ordered.