2023 (10) TMI 665 - AT - Insolvency and Bankruptcy

Maintenance of status quo - HELD THAT - Considering the submission advanced by learned senior counsel for the appellant that e-voting for AGM is scheduled to commence from 26th September, 2023 wherein authorized representative of Orbit Electricals Pvt Ltd/Respondent No.1 may participate as well as the fact that decision taken in the EOGM of Orbit Electricals Pvt Ltd held on 3rd May, 2019 is subject matter of the present appeal, it is proposed to direct the parties to maintain Status Quo as was available prior to EOGM dated 03.05.2019 till the judgement is delivered by this Tribunal. Normally after admission of appeal and at the time of hearing such order is not required to be passed but for the ends of justice once we are reserving judgement and delivery of judgement may take some reasonable time, we feel it is necessary to pass the aforesaid interim order while reserving the judgement. Judgement is reserved.

Summary

Issues involved: Reserving judgment, maintaining status quo, filing written submissions.

Reserving Judgment: The hearing in the present appeal, which involved detailed arguments from learned senior counsel on all sides, took place continuously on multiple days. Due to the voluminous nature of the appeal, the Tribunal found it challenging to immediately deliver the judgment. Consequently, the judgment was reserved, and its delivery was anticipated to take some time. The Tribunal acknowledged the upcoming e-voting for the AGM scheduled to commence on 26th September, 2023, in which the authorized representative of Orbit Electricals Pvt Ltd/Respondent No.1 might participate. Given that the decision made in the EOGM of Orbit Electricals Pvt Ltd on 3rd May, 2019, was the subject matter of the appeal, the parties were directed to maintain the status quo as it existed before the EOGM dated 03.05.2019 until the judgment is delivered by the Tribunal. This interim order was deemed necessary for the ends of justice, especially since the judgment's delivery was expected to take some reasonable time. Therefore, the judgment was reserved.

Maintaining Status Quo: The Tribunal proposed to direct the parties to uphold the status quo that was in place prior to the EOGM dated 03.05.2019 until the judgment concerning the appeal was delivered. This decision was influenced by the upcoming e-voting for the AGM on 26th September, 2023, and the fact that the appeal revolved around the decision taken in the EOGM of Orbit Electricals Pvt Ltd on 3rd May, 2019. While such orders are not typically passed after the admission of an appeal and during the hearing, the Tribunal deemed it necessary to ensure justice by maintaining the status quo during the period of reserving the judgment. This measure was considered essential given the circumstances of the case and the time required for delivering the judgment.

Filing Written Submissions: Learned counsels representing all parties were granted the liberty to file Notes of Written Submissions within a period of 10 days. It was expected that the written submissions on behalf of all the Respondents would be filed in a consolidated form. This allowance for filing written submissions with citations, if any, aimed to provide an opportunity for the parties to present their arguments and legal references effectively. The timeline provided for filing these submissions indicated the Tribunal's commitment to ensuring a comprehensive consideration of all relevant aspects before reaching a final decision.