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2017 (5) TMI 1059 - HC - Companies LawApplication of the petitioner under Section 420(2) of the Companies Act 2013 - revision petition - Held that - In the present case it remains undisputed by the opposite parties that while passing the order dated January 30 2017 the Tribunal did not record the contentions raised on behalf of the present petitioner through oral argument and by filing the written note of submissions. Therefore the Tribunal ought to have entertained and disposed of the application of the petitioner under Section 420(2) of the Act of 2013 but once again the Tribunal failed to discharge its duty to remove the mistake in passing the order dated January 30 2017 which is apparent from the record. In the facts of the case as already discussed find substance in the contention raised on behalf of the petitioner on the strength of the Supreme Court decisions in the cases of Shalini Shyam Shetty (2010 (7) TMI 877 - SUPREME COURT ) that the impugned order dated April 11 2017 passed by the Tribunal is vitiated by patent perversity resulting in gross and manifest failure of justice. For all the foregoing reasons the revisional application succeeds.
Issues:
Challenge to orders passed by National Company Law Tribunal, Kolkata Bench in C.A. No. 378 of 2014 and I.A. No. 59 of 2017 arising from C.P. No. 48 of 1996 under Sections 197 and 398 of the Companies Act, 1956. Analysis: The petitioner challenged the order dated April 11, 2017, passed by the National Company Law Tribunal, Kolkata Bench, in I.A. No. 59 of 2017. The history of the case dates back to applications filed in 1996 and 1999 under Sections 197 and 398 of the Companies Act, 1956. The Company Law Board dismissed both petitions in 2005. Subsequently, the Companies Act, 2013 came into force, transferring proceedings to the Tribunal. The petitioner sought to recall the order dated January 30, 2017, alleging that the Tribunal did not consider their submissions and contentions. The Tribunal rejected the petitioner's application under Section 420(2) of the Act of 2013 on April 11, 2017, stating the remedy lay in appealing to the National Company Law Appellate Tribunal. The petitioner argued that the Tribunal's rejection was erroneous, citing the Supreme Court cases of Shalini Shyam Shetty and K.V.S. Ram. The opposite parties did not dispute the petitioner's contentions. The Court noted that the Tribunal failed to record the petitioner's arguments and did not rectify the mistake apparent on the face of the record. Relying on the Supreme Court decisions, the Court found the impugned order vitiated by patent perversity, leading to a manifest failure of justice. Consequently, the revisional application succeeded, and the impugned order was set aside. The Tribunal was directed to decide on I.A. No. 59 of 2017 promptly, preferably within four weeks. The revisional application was disposed of with no order as to costs, and certified copies of the order were to be provided to the parties upon request.
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