Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2018 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 26 - HC - Companies LawChallenging the impugned order passed by the NCLT in arbitration proceedings - Held that:- Though the statutory remedy of filing appeal under Section 421 of the Companies Act is available to the petitioners for challenging the impugned order passed by the NCLT, the said remedy would not be effective or efficacious alternative remedy in the facts and circumstances of the case. As stated herein above the NCLT vide the impugned order has refused to exercise the jurisdiction vested in it under the Companies Act by postponing its decision on the reliefs claimed by the petitioners in the Company Petition filed under the Companies Act till the final outcome of the arbitration proceedings pending between the respondent inter se though the petitioners are not the parties to the said arbitration proceedings. The NCLT has also travelled beyond its jurisdiction by making the reliefs claimed in the Company Petition by the petitioners, dependent on the outcome of such arbitration proceedings. Prima facie there being no arbitration agreement existing between the concerned petitioners and the concerned respondents for resolving the disputes in respect of the shares in question, and the petitioners being not the party to the arbitration proceedings pending before the respondent No.18, the NCLT could not have passed the impugned order holding that the decision on the reliefs C D E and I shall depend upon the findings of arbitral tribunal regarding the restrictions contemplated on the transfer of shares in SHA and its binding nature, and that the decision on reliefs relating to A B F G H J and K is postponed till the decision of the arbitral tribunal. The Court is at loss to understand as to how the findings recorded in the arbitration proceedings pending between the respondents inter se could be made binding to the petitioners who are the strangers to the arbitration agreement and the proceedings. The NCLT is bound to decide the issues raised in the company petition independently and in accordance with law. By passing the impugned order, the NCLT has clearly abdicated its statutory duty cast on it and has refused to exercise the jurisdiction vested in it under the Companies Act.
|