Home Case Index All Cases Companies Law Companies Law + AT Companies Law - 2022 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (1) TMI 1434 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHIOppression and Mismanagement - Illegal transactions and siphoning of funds - removal of Mr. Mukesh Bhandari from the post of Managing Director of the Appellant Company - seeking waiver of the eligibility criteria laid down under Section 244 of the Act was dismissed by NCLT - HELD THAT:- The Hon’ble Apex Court in Muncipal Corporation of the City of Ahmedabad’ Vs. ‘Ben Manilal [1983 (4) TMI 291 - SUPREME COURT] held that wrong reference to the power under which an action was taken by the Government would not per se vitiate the action, if the same could be justified under some other power whereby the Government could lawfully do that act. Section 420(1) of the Companies Act, 2013 provides for ‘the Tribunal may, after giving the parties to any proceeding before it, a reasonable opportunity of being heard, pass such orders thereon as it thinks fit.’ - Even in the absence of Rule 11 this Appellate Tribunal, being essentially a judicial forum determining and deciding rights of parties concerned and granting appropriate relief, can, in exercise of its powers to meet ends of justice, or prevent abuse of its process, pass any such Interim Directions. Such Powers being inherent in the constitution of the Appellate Tribunal, Rule 11 can merely be said to be declaring the same to avoid ambiguity. As long as the power is present, non-quoting or misquoting of the Section is not fatal. A harmonious construction thus requires that the direction should cover two different situations. If a particular action is valid under one Section, it cannot be rendered invalid, or that the Tribunal is not empowered to pass such a direction, if the wrong Section is quoted. The statute empowers the Tribunal from passing any Interim Order, it deems fit and in such a situation, keeping the affairs of the Company in mind, the Tribunal has rightly moulded the reliefs. Cases are known in which Courts have moulded the reliefs to meet a situation such as this. Quoting a wrong Section/sub-Section does not estop a Court from taking note of events, circumstances which happen during that time frame. Hence, the intent of the law maker and the nature and scope of the Legislation is to be kept in mind, as any departure from the same could result in fatal consequences. Both the Company Petitions 93 & 94 of 2018 be decided by NCLT as expeditiously as practicable, but not later than three months from the date of receipt of a copy of this Order - Appeal disposed off.
|