2021 (4) TMI 1380 - SCH - Companies Law

Non-inclusion of principles of natural justice especially audi alteram partem (giving opportunity of hearing to the other side) in the Master Directions on Fraud dated 01.07.2016 - it was held by High Court that 'Once the JLF was of the opinion that further clarification is required from the Forensic Auditor, once it is in the process of taking a decision, once it has decided to wait till further clarification is submitted, the JLF is not justified in concluding that the account be treated as fraud .' HELD THAT - Issue notice. Set down for hearing on Tuesday, the 13th July, 2021 on top of the Board.

Summary

Issues Involved:
1. Exemption from filing certified copy of the impugned order
2. Notice issuance
3. Dasti service permission
4. Timelines for filing counter affidavit and rejoinder affidavit
5. Hearing date scheduling
6. Stay on the Minutes/Order dated 15.02.2019 passed by the Joint Lenders Meeting and the High Court's observation regarding a personal hearing

Exemption from Filing Certified Copy:
The Supreme Court allowed applications seeking exemption from filing a certified copy of the impugned order. This decision signifies a procedural leniency granted by the Court in this matter.

Notice Issuance:
The Court issued notice regarding the case, indicating that all relevant parties should be informed and involved in the legal proceedings.

Dasti Service Permission:
In addition to issuing notice, the Court permitted Dasti service, which implies that the service of legal documents can be done directly by hand delivery.

Timelines for Affidavit Filing:
The learned counsel was granted permission to file a counter affidavit within four weeks from the current date, with a provision for a rejoinder affidavit to be filed within two weeks thereafter. These timelines are crucial for maintaining the efficiency of the legal process.

Hearing Date Scheduling:
The case was set down for hearing on a specific date, namely Tuesday, the 13th of July, 2021. This scheduling ensures that the legal proceedings progress in an organized and timely manner.

Stay on Joint Lenders Meeting Order:
The Court ordered a stay on the Minutes/Order dated 15.02.2019 passed by the Joint Lenders Meeting. Additionally, the High Court's directive for a personal hearing was stayed. These stays indicate a temporary halt on the implementation of these decisions until further legal deliberations are conducted.