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Issues involved:
Interpretation of section 10F of the Companies Act, 1956 for filing an appeal to the High Court based on questions of law arising from the order of the Company Law Board. Analysis: The judgment revolves around the interpretation of section 10F of the Companies Act, 1956, which allows an appeal to the High Court within sixty days from the date of communication of the decision or order of the Company Law Board on any question of law arising out of such order. The intention of the law maker is to permit an appeal only on questions of law and not otherwise. The original pleading did not contain any such question of law, but additional pleadings were allowed to set out the questions of law warranting intervention under section 10F. The questions of law raised include the sustainability of the Company Law Board's order without discussing prima facie case, balance of convenience, and interest of justice, consideration of subsequent events in interim orders, failure to give findings on diversion of company's assets, and the legality of actions by respondents in calling for rights issue without a special resolution. The court held that none of these questions can be considered as questions of law arising from the Company Law Board's order, and thus, the appeal cannot be entertained under section 10F. The judgment emphasizes that the order under challenge was an interlocutory order for the appointment of an administrator at the interim stage. The Company Law Board exercised discretion in the contextual facts, and the use of discretion was not so perverse as to warrant interference or intervention of the appellate court. The court highlighted that the matter was pending before the Company Law Board for final adjudication, and there was no reason to entertain an appeal based on the grounds raised under section 10F. As a result, the appeal was dismissed, and it was advised that the Company Law Board should expedite the disposal of the matter without any order as to costs. In conclusion, the judgment clarifies the scope of section 10F of the Companies Act, 1956, in allowing appeals to the High Court based on questions of law arising from the Company Law Board's order. It underscores the importance of distinguishing questions of law from other considerations and highlights the limited grounds on which appeals can be entertained under this provision. The court's decision to dismiss the appeal and advise expeditious disposal by the Company Law Board reflects a commitment to efficient resolution of disputes within the legal framework provided.
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