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2017 (8) TMI 672 - HC - Indian LawsDeclining to issue license to the petitioner for running a FL-11 Hotel - conduct of EOGM - authorisation to Managing Director to seek licence - Held that:- There was an interim order, Ext. P7, passed by the Tribunal, appointing Justice M. Ramachandran, former Judge of this Court to conduct the EOGM. It is also not in dispute that the EOGM was convened in accordance with the directives issued by the Tribunal and several decisions were taken. One among the resolutions adopted in the EOGM is in respect of the renewal of FL-11 Bar license, and has apparently authorized the 2nd petitioner as the Managing Director of the 1st petitioner company to seek issuance of license. May be true, the subject disputes are pending by and between the parties before the Tribunal. But, at the same time, the Hotel is run by the 1st petitioner company and any income generated to the account of the company will not in any manner prejudice the Directors. The apprehension voiced by the learned counsel appearing for the additional 3rd respondent is that, if the license is renewed in favour of the 2nd petitioner, it will cause irreparable injury to the additional 3rd respondent, since it will be treated as a right conferred on the 2nd petitioner. However, the said apprehension may not have much bearing since the subject matter is ultimately pending before the Tribunal, which is at liberty to take appropriate decisions. Therefore, in the interregnum, in order to protect the interests of the company and its shareholders, I think it is only appropriate and fair to make a provision to run the hotel, with FL-11 license, if the petitioners are legally entitled to run the same in accordance with the Rules. There will be a direction to the 2nd respondent to re-consider the application submitted by the 2nd petitioner to renew FL-11 license of Hotel Windsor Castle, Kodimatha, Kottayam, as a properly constituted application, and if otherwise the application is in order and in accordance with law, I see no reason to decline the license.
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