2016 (11) TMI 1717 - Tri - Insolvency and Bankruptcy

Seeking interim injunctions - several uncalled for letters/ complaints to bank authorities, the accounts of the company (R-1) could not be operated - HELD THAT - It is deemed justifiable to pass an interlocutory order granting interim injunction - application disposed off.

Summary

Issues involved: Interlocutory Application for interim injunction regarding operation of company accounts and holding of Annual General Meeting (AGM) for statutory compliances.

Interpretation of Judgment:

Interlocutory Application for Interim Injunction:
The Respondent no. 2 sought certain interim injunctions due to the Petitioner's actions affecting the operation of the company's accounts. The court noted that the Petitioner's letters to bank managers resulted in the blocking of bank operations. The Respondent argued that the Petitioner's alleged non-cooperation and anti-business conduct had almost halted the company's day-to-day operations. Consequently, the court granted an interlocutory order allowing the operation of the company's accounts in specific banks, such as HDFC, Canara Bank, and ICICI Bank, by Respondent no. 2 and 3 jointly. This permission was granted for a limited period until 30.12.2016 to meet tax liabilities, office expenses, staff salaries, and other statutory compliances. The banks were directed to allow withdrawals after obtaining authorized signatures and completing necessary formalities.

Holding of Annual General Meeting (AGM) for Statutory Compliances:
The court directed the Petitioner and Respondent no. 2 and 3 to hold an AGM for the company to complete pending legal formalities, ensuring compliance with statutes like the Companies Act and Income Tax Act. The parties were instructed to formulate an agenda for the AGM to be convened by 15.12.2016, with immediate service of notices as required under the Companies Act to concerned parties. It was emphasized that the AGM should be conducted amicably, with resolutions promptly conveyed to the Registrar of Companies (ROC) and the National Company Law Tribunal (NCLT) in Ahmedabad.

Directions for Compliance and Communication:
The parties were directed to maintain harmony and actively participate in the AGM. The legal representative of Respondent no. 2 was tasked with communicating the court's order to bank authorities and the Petitioner. The Registry was instructed to provide a certified copy of the order as per rules. The court scheduled the next hearing for 5.1.2017, with a mandate for Respondent no. 2 to inform the Petitioner and others about the date. The Interlocutory Application IA 31/2016 was disposed of in accordance with the above order.

This detailed judgment by the National Company Law Tribunal in Ahmedabad addressed the issues raised in the Interlocutory Application concerning the operation of company accounts and the necessity of holding an AGM for statutory compliances. The court's decision provided specific directives to ensure the smooth functioning of the company, compliance with legal requirements, and the resolution of disputes between the parties involved.