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2021 (8) TMI 550 - HC - Companies LawSuit for declaration and injunction - application filed under Order VII Rule 11 of the Code of Civil Procedure for rejection of the plaint - doctrine of estoppel - HELD THAT:- Sections 397 and 398 of the 1956 Act in cases of oppression and mismanagement and were similar in scope to Sections 241 and 242 of the 2013 Act. Since, admittedly, the CLB order was, inter alia, passed under the former provisions, the same operates as an issue estoppel against the plaintiffs from urging similar issues in the subsequent suit. The plaintiffs submitted to the jurisdiction of the CLB by participating in the proceeding before the CLB. The principle of res judicata squarely applies, since the CLB elaborately considered the family settlement/arrangement-in-question in the context of the transfer of the shares of both the companies – HCM and HF - in view of the CLB having already adjudicated the issue on merits at length in similar context as in the present suit, the principle of res judicata comes into operation squarely, debarring the plaintiffs from filing the present suit. The suit is barred by law as contemplated in Order VII Rule 11(d) of the Code of Civil Procedure - impugned order set aside - application allowed.
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