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2019 (7) TMI 581 - AT - Companies LawInitiation of Contempt Proceedings - Violation of order of status quo dated 29th November, 2017 - Section 421 of the Companies Act, 2013 - HELD THAT - Section 420 of the Companies Act, 2013 empowers the Tribunal to pass order after giving the parties to any proceedings before it, a reasonable opportunity of being heard. The order passed under Section 420 of the Companies Act, 2013 is appealable under Section 421 of the Companies Act, 2013. For the purpose of initiation of contempt proceedings the Tribunal is empowered with the same power as that of High Court and for the purpose power under the provisions of the Contempt of Court Act, 1971 is applicable subject to modification as shown therein - As per Contempt of Court Act, 1971, the appeal lies under Section 19. In the present case, as we find that the Tribunal, after taking into consideration the relevant facts, has come to a definite conclusion and refused to initiate contempt proceedings, we are not deciding the issue aforesaid on merit as we do not want to interfere. Appeal dismissed.
Issues involved:
- Alleged violation of 'status quo' order - Application under Section 425 of the Companies Act, 2013 for contempt proceedings - Dismissal of the application by the National Company Law Tribunal - Appeal under Section 421 of the Companies Act, 2013 Alleged violation of 'status quo' order: The Appellant alleged a violation of the 'status quo' order dated 29th November, 2017 and moved an application under Section 425 of the Companies Act, 2013 for contempt proceedings against the 'Contemnor-Respondents'. The National Company Law Tribunal, Guwahati Bench dismissed the application, emphasizing the need for clear communication of such orders to the contemnors and the requirement to prove willful and intentional violation. The Tribunal highlighted the importance of communication and evidence in establishing contempt, ultimately leading to the dismissal of the application. Application under Section 425 of the Companies Act, 2013 for contempt proceedings: The power to punish a contemnor is vested with the Tribunal under Section 425 of the Companies Act, 2013. The Tribunal and the Appellate Tribunal have jurisdiction over contempt matters similar to that of the High Court, as per the Contempt of Courts Act, 1971. The Tribunal's authority to initiate contempt proceedings is subject to the provisions of the Contempt of Courts Act, 1971, with the appeal process falling under Section 19 of the Act. Dismissal of the application by the National Company Law Tribunal: The Tribunal's decision to reject the application for contempt proceedings under Section 425 of the Companies Act, 2013 raised questions regarding the maintainability of an appeal under Section 421 when no penal order of punishment had been issued. The Tribunal's refusal to initiate contempt proceedings after considering the facts led to the dismissal of the appeal, indicating a reluctance to interfere with the Tribunal's decision in the absence of a clear merit-based challenge. Appeal under Section 421 of the Companies Act, 2013: The appeal under Section 421 of the Companies Act, 2013 was preferred by the Appellant, citing being aggrieved by the Tribunal's order as a ground for appeal. Section 420 of the Companies Act, 2013 grants the Tribunal the power to pass orders after giving parties a reasonable opportunity to be heard, with Section 421 providing for the appeal process. The Tribunal's decision not to initiate contempt proceedings influenced the appeal's outcome, resulting in its dismissal without costs. This comprehensive analysis of the judgment highlights the key issues, legal provisions, and the Tribunal's rationale behind dismissing the application and subsequent appeal in the context of alleged contempt of court proceedings under the Companies Act, 2013.
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