2013 (9) TMI 1201 - Board - Companies Law

Summary

Issues involved: Allegations of criminal contempt against respondents for publishing slanted news to influence public and judiciary.

Summary:
The case involved company applications u/s 15 of Contempt of Court Act filed by Mr. R P Khosla and his son against Mr. Vikram Bakshi, his wife, and others, alleging manipulation of news to influence public opinion and judiciary. The applicants contended that Mr. Bakshi colluded with business journals to portray unfair treatment by M/S McDonald USA. They accused Mr. Bakshi of using his position as a director to publish slanted news in various newspapers, despite the matter being sub-judice before the Company Law Board. The applicants presented newspaper clippings showing inflated valuations of Mr. Bakshi's stake and biased reporting against M/S McDonald USA. They argued that such actions amounted to criminal contempt u/s 15 of Contempt of Court Act.

The applicants claimed that Mr. Bakshi projected himself as an equal partner with M/S McDonald USA, despite the latter investing significantly more in the company. They alleged that the news articles portrayed Mr. Bakshi as unfairly treated and attempted to influence the ongoing litigation. The applicants highlighted specific articles and journalists who they believed intentionally published slanted news to interfere with the administration of justice. They requested the Board to initiate criminal contempt proceedings against the respondents.

The Board dismissed the applications, granting the applicants the liberty to seek remedy before the appropriate forum on the same cause of action.