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TMI Blog2015 (4) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot today draw any adverse inference against the appellant, on the basis of the averments made by the co-respondent against the appellant. Once it is clear that the appellant, as a respondent, cannot file a counter reply to the reply of one of the respondents, I do not think that the appellant can be made to suffer by the Court drawing any adverse inference against the appellant and holding him guilty. This safeguard is available to him even under common law. Therefore, holding that the refusal of the Company Law Board to entertain a counter reply from the appellant who is only a co-respondent, to the reply filed by another respondent, is perfectly justified in terms of Regulation 23, this appeal is dismissed. However, I make it clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd they are represented by the same counsel. 3. Without getting into any factual details, the short question of law that arises for consideration in this appeal is as to whether one of the respondents in a petition before the Company Law Board under Sections 397 and 398 is entitled to file a reply to the counter filed by a co-respondent or not. 4. In so far as the procedure to be adopted by the Company Law Board for hearing and deciding petitions under the Companies Act, are concerned, it is governed by the Company Law Board Regulations 1991. Regulation 11 indicates that all petitions filed before the Company Law Board are to be in writing. Regulation 13 states that the general heading in all proceedings are to be in Form-1 in Annexur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Annexures R1, R2, R3 and so on. (4) The respondents shall also serve a copy of the reply along with the document mentioned in sub-regulation (1) duly attested to be true copies on the petitioner or his authorised representative, if any, and file proof of such service with the Office of the Bench. (5) The Bench may, if so satisfied, allow filing of the reply after the expiry of the prescribed period, on sufficient cause being shown. 23. Filing of counter-reply by the petitioner -Where the respondent states such additional facts as may be necessary for the just decision of the case under sub-regulation (2) of regulation 22, the Bench may allow the petitioner to file a counter-reply to the reply filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame. 8. Therefore, it is clear that if a Court is a Civil Court or if a Forum is one to which the provisions of the Civil Procedure Code would apply, then a party can fall back upon Order VIII, Rule 9, to make subsequent pleadings. Order VIII, Rule 9, is worded in a peculiar fashion. It speaks only about subsequent pleadings. It does not indicate as to who are the parties who are entitled to file subsequent pleadings. Subsequent pleadings are automatically permitted by way of defence to a set off or counter claim. But subsequent pleadings otherwise than by way of defence to set off or counter claim, can be made only with the leave of the Court. The persons who are entitled to file subsequent pleadings with the leave of the Court, are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o cover a particular area. Therefore, the appellant cannot fall back upon Regulation 44 to file a counter reply to the reply of one of the co-respondents. 11. Mr. P.J. Rishikesh, learned counsel for the appellant contended that the counter filed by the fourth respondent in this appeal, contains various allegations against the appellant and that they have been made as a result of collusion between the main petitioner and the respondents 3 and 5 in the main company petition. Therefore, the learned counsel contended that unless he brings on record these facts, the allegations made against him would go uncontroverted, resulting in an adverse inference against the appellant. 12. But I do not think that such a contingency will arise . The c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he proceedings before the Company Law Board, the Company Law Board is obliged to follow the principles of natural justice. In other words, it is his contention that the appellant could be given an opportunity to refute the allegations against him, at least by invoking the power conferred under Section 10-E(5). 15. But it should be pointed out that the fundamental principle of natural justice is that a man shall not be condemned unheard. Once I have ensured that the allegations made against the appellant cannot be held against him without permitting him to file a counter reply, the question of condemning the appellant unheard may not arise. Therefore, Section 10-E(5) will have no application to the case on hand. 16. In the result, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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