2024 (8) TMI 1566 - SCH - Companies Law

Maintainability of appeals preferred by the first and second respondents before the High Court - HELD THAT - The impugned judgment of the High Court notes that an objection was raised by the present appellants in both the appeals that the appeals preferred by the first and second respondents were not maintainable. The High Court has specifically recorded a finding that it is not deciding the issue of maintainability. Nevertheless the appeals have been partly allowed and an order of remand has been passed. The appeals could not have been decided on merits without deciding the issue of maintainability raised by the appellants. The impugned judgment is quashed and set aside only on that ground. Company Appeal are restored to the file of the High Court of Delhi at New Delhi. The High Court will proceed to first decide the issue of maintainability raised by the appellants. All the contentions of the parties in that behalf are left open. Appeal allowed in part.

Summary

The Supreme Court, in the judgment authored by Justices Abhay S. Oka and Augustine George Masih, granted leave and addressed a procedural issue regarding Company Appeal Nos. 19, 20, 21, and 22 of 2023. The Court observed that the High Court had not adjudicated the "issue of maintainability" of appeals preferred by the first and second respondents (appellants before the High Court), yet proceeded to partly allow the appeals and remand the matter. The Supreme Court held that "The appeals could not have been decided on merits without deciding the issue of maintainability raised by the appellants." Consequently, the impugned judgment was "quashed and set aside only on that ground," and the appeals were restored to the High Court for a determination of maintainability, leaving all contentions open. The interim relief granted earlier remains operative pending disposal. The appeals were "partly allowed" accordingly.