2003 (9) TMI 549 - SC - Companies Law

Enforcement of decrees and orders - Held that - With a view to expedite payments of the legitimate claims of the parties, we direct the Custodian who is represented by his counsel Mr. A. Subba Rao in these proceedings, to find out if any pro rata payment is possible, either to the Power Grid Corporation or Shree Cement Ltd. from out of the funds available with the Custodian on account of Fair Growth Financial Services Ltd., a notified company. If so, the amount so available to be paid to either of the parties named above, be made known to this Court on the next date of hearing.

Issues:
1. Jurisdiction of the Supreme Court under Article 142 of the Constitution of India.
2. Withdrawal of Company Appeal (B)-3/1998.
3. Disposal of Company Petition No. 3/111/1994 by the Company Law Board.
4. Expedited disposal of Company Petition No. 3/111/1994 within 3 months.
5. Pro rata payment to be facilitated by the Custodian from funds available.
6. Direction to the Board to decide on all issues without reference to maturity of bonds.

Analysis:
1. The Supreme Court, in this judgment, addressed the jurisdiction under Article 142 of the Constitution of India invoked by Shree Cement Ltd. in I.A. Nos. 4 and 5 of disposed of C.A. No. 14420 of 1996 against the National Power Transmission Corporation Ltd. The Court noted that the matter involved certain common questions that may arise before the Company Law Board in Company Petition No. 3/111/1994. The Court decided to prioritize the disposal of the company petition by the Board before considering the aforementioned applications, emphasizing the need for timely resolution due to the protracted nature of the dispute dating back to 1990. The Court directed the Board to finalize the company petition within 3 months from the receipt of the order, setting a deadline for completion and subsequent consideration of the pending applications.

2. The judgment also dealt with the withdrawal of Company Appeal (B)-3/1998 titled Power Grid Corporation India Ltd. v. Shree Cement Ltd. The Additional Solicitor General representing the appellants in the Transferred Case informed the Court about the withdrawal of the appeal, leading to the requirement for the Power Grid Corporation to argue Company Petition No. 3/111/1994 pending before the Company Law Board. The Court acknowledged this development and proceeded to dismiss Transferred Case No. 54/03 as withdrawn, thereby shifting the focus to the pending company petition for resolution.

3. Furthermore, the Court issued directives related to the expedited disposal of the company petition and facilitation of pro rata payments to the involved parties. The Custodian was instructed to explore the possibility of making pro rata payments to either the Power Grid Corporation or Shree Cement Ltd. from the funds available with the Custodian on account of Fair Growth Financial Services Ltd. The Court mandated that any amount available for distribution be disclosed at the next hearing. Additionally, the Board was directed to address all issues before it and provide findings without considering the maturity of the bonds in question, emphasizing the need for a comprehensive resolution of the matters at hand.

In conclusion, the Supreme Court's judgment focused on streamlining the resolution process of the ongoing disputes by prioritizing the disposal of the company petition, facilitating potential payments, and directing the Board to address all relevant issues promptly. The Court's directives aimed to ensure a timely and comprehensive resolution of the legal matters involved, emphasizing efficiency and adherence to legal procedures.

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