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2016 (5) TMI 645 - Board - Companies LawDoctrine u/s 10 of CPC - request for stay of proceedings - allegations of violation of the principles of corporate governance which has led to payment crisis - Held that:- The remedy under section 388B, 397, 398 is altogether different from the remedy, the investors sought in Civil Cases. Moreover, Section 10 says that the parties must be the same in the prior suit and the matter in issue shall be directly and substantially in issue in a previously instituted suit between the parties. Though, the fact of not making payment to the investors in both the cases is the same, the issues are entirely different in these two proceedings, the parties are different, the remedies are different, the objects are different, the nature of claim is different. Therefore, the bar u/s 10 of CPC is not at all applicable to the present proceeding. FTIL has made hectic efforts to keep these proceedings under carpet by highlighting that subject matter in all these proceedings is one and the same, ignoring the fact when fraud is manifest actions are many to control the damage that has been caused to individuals and to the public as a whole. Here it is managerial personnel against whom an allegation of defrauding investors for an amount of ₹ 5600 crores is made; therefore, an enquiry has to be conducted as expeditiously as possible to decide whether their removal of directors is necessary or not. The doctrine u/s 10 of CPC is not applicable to the present case. - Application dismissed - Decided against the applicant.
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