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2019 (9) TMI 713 - AT - Companies LawContempt of Court / Tribunal - Seeking initiation of contempt proceedings against the Respondents - application u/s 425 of the Companies Act, 2013 - alleged wilful violation of the order dated 23rd October, 2008 passed by the erstwhile Company Law Board, Additional Principal Bench, Chennai - no wilful disobedience of order. Whether an appeal under Section 421 of the Companies Act, 2013 is maintainable against an order passed by the Tribunal in exercise of powers conferred under Section 425 of the Companies Act, 2013 which empowers the Tribunal to initiate contempt proceeding for committing contempt of its own order? HELD THAT:- The Tribunal has been empowered to exercise and discharge such powers and functions as have been conferred on it or under this Act or any other law (‘Insolvency and Bankruptcy Code, 2016’) for the time being in force - From Section 421 of the Companies Act, 2013, it is clear that if the Tribunal passes order under Section 420 of the Companies Act, 2013, an appeal under Section 421 of the Companies Act, 2013 is maintainable before the Appellate Tribunal. From Section 425 of the Companies Act, 2013, it will be evident that the Tribunal as also the Appellate Tribunal have been empowered with the same jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the provisions of the ‘Contempt of Courts Act, 1971’, which shall have the effect subject to modifications that in place of High Court, it should be read as Tribunal or the Appellate Tribunal; and in place of Advocate-General, it is to be read as Law Officers as may be specified by the Central Government. The Tribunal and the Appellate Tribunal are empowered to punish a person for violation of its own order under the ‘Contempt of Courts Act, 1971’ and are required to follow procedure prescribed under Section 14 of the ‘Contempt of Courts Act, 1971’ before holding a person guilty of having committed contempt of the Tribunal or the Appellate Tribunal - No appeal is maintainable under Section 421 of the Companies Act, 2013 once the Tribunal exercises its power under ‘Contempt of Courts Act, 1971’ read with Section 425 of the Companies Act, 2013. Thus, for non-exercising of powers for initiation of contempt proceeding by the Tribunal in exercise of powers conferred by the ‘Contempt of Courts Act, 1971’ read with Section 425 of the Companies Act, 2013, the appeal under Section 421 of the Companies Act, 2013 is not maintainable before this Appellate Tribunal - This apart, the petition for initiation of Contempt proceeding was also barred by limitation as prescribed under Section 20 of the ‘Contempt of Courts Act, 1971’. Appeal dismissed.
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