2016 (4) TMI 1372 - SC - Companies Law

The High Court ought not to have interfered with the ad-interim order passed by the Company Law Board when the matter of interim relief was yet to be heard by the Board - We request the CLB to expedite the hearing. It would be open to the CLB to confirm vary or vacate the interim order after hearing the parties.

Summary

Issues:
High Court interference with Company Law Board's ad-interim order

Analysis:
The Supreme Court granted leave and heard the counsels. The Court opined that the High Court should not have intervened in the ad-interim order issued by the Company Law Board, especially when the matter of interim relief was yet to be fully heard by the Board. Consequently, the Supreme Court set aside the impugned order of the High Court. It was clarified that since the case was still pending before the Company Law Board, the Supreme Court refrained from expressing any opinion on the merits of the case. The Court was informed that the matter was scheduled for a hearing before the Company Law Board on a specific date and requested the Board to expedite the proceedings. The Company was allowed to incur necessary expenses for its day-to-day operations without creating any third-party rights on its assets. As a result, the appeals were disposed of, leading to the disposal of pending applications as well. The Company Law Board was given the authority to confirm, vary, or vacate the interim order after hearing all concerned parties.