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2018 (4) TMI 1730 - AT - Companies LawWhether impugned interim order is in consonance with sub-section (4) of Section 242 of the Companies Act, 2013? HELD THAT - If the impugned order is stayed if will amount to grant of final relief, while we are not inclined to stay of the impugned order for the present, give liberty to State Bank of India/ Convenors of Joint Lenders to reach agreement to sale/ sale deed with regard to the mortgaged properties of the Company with any reliable purchaser and will keep the amount in a separate Escrow Account, which shall be subject to the decision of the appeal. If the State Bank of India intends to execute sale deed(s), the parties will co-operate with it. Post the matter on 18th April, 2018 before the 1 st Court.
Issues Involved:
Competency of National Company Law Tribunal to pass interim orders under Section 242 of the Companies Act, 2013. Analysis: The judgment revolves around the question of whether the National Company Law Tribunal (NCLT) has the authority to issue interim orders as per Section 242(4) of the Companies Act, 2013. The appeal challenges an interim order dated 12th March, 2018. The Tribunal issues notices to the Respondents, with some already represented by counsel and no notice required for them. The remaining Respondents are to be served via speed post, with a deadline for filing replies. The Appellants are directed to provide a certified copy of the impugned order promptly. The Court hears arguments from both parties' counsels, including Senior Counsel for the Appellants and counsel for the Contesting Respondents. Additionally, Senior Counsel for the State Bank of India (SBI) informs the Court of their intent to file an appeal against the same impugned order. The Court considers the implications of staying the impugned order, noting that such action could effectively grant final relief. Consequently, the Court refrains from staying the order but grants the SBI and Joint Lenders the liberty to proceed with the sale of mortgaged properties, subject to certain conditions. The proceeds from the sale are to be held in a separate Escrow Account pending the appeal's outcome, with all parties required to cooperate in the sale process. The matter is scheduled for further proceedings before the 1st Court on 18th April, 2018. The judgment carefully balances the interests of the parties involved while addressing the legal complexities surrounding interim orders and the sale of mortgaged properties under the Companies Act, 2013.
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