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TMI Blog2013 (10) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt, to regulate filing of caveats, under Section 148A of the Code of Civil Procedure (CPC). More specifically, a direction that some orders of the CLB are a nullity, and therefore, require to be quashed is also sought. 2. Briefly, the petitioners claim to have filed a caveat before the CLB on 10.09.13 in Vikram Bakshi v. Connaught Plaza Restaurants for notice of any hearings scheduled to take place in the matter, and for the provision of all documents tendered by the parties to the CLB. In the caveat application under Section 148A, CPC, at paragraphs 414, the caveat petitioners also sought to establish their interest in the matter, as also indicating an intention to request for impleadment as an intervenor. 3. It is argued that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the petitioners, all orders having any adverse impact or consequence to them issued without furnishing copies to them, or without hearing them, were a nullity. They require to be quashed. 4. The limited question requiring consideration of this Court for the purposes of this Petition is whether a failure by the CLB to provide notice to the petitioners as caveators under Section 148A of the CPC renders those proceedings, and the orders passed therein, a nullity. 5. The Company Law Board Regulations, 1991 were framed in exercise of powers under Section 10-E of the Companies Act, 1956. These regulations provide for various situations with respect to filing or presentation of petitions and matters before the CLB, their listing, orders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heard, especially when the parties to the litigation do not admit or recognize his right to be heard, is a matter to be determined by the concerned court. Analogically, therefore, even if it is assumed that the petitioner s caveat was indeed lodged with the CLB, as is contended here, it would not automatically follow that the caveators would have a right to be heard, when they are not shown as parties. 7. The question as to whether an order of stay made without hearing the caveator is unenforceable or is a nullity was considered by the Andhra Pradesh High Court in Reserve Bank of India Employees Association and Anr. v. The Reserve Bank of India and Ors., AIR 1981 AP 246, where the court held as follows: 5 It follows, therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt agrees with the above view as a general proposition of law, that the failure to provide notice under Section 148A does not, ipso facto, render the order a nullity. Here, one must also see whether any special prejudice has been caused to the caveator apart from the mere fact of not being served, which is in itself insufficient to vitiate the entire proceedings. In the present case, quite apart from the fact that no order has been made against the caveators, they have not disclosed any special damage or prejudice caused to them by the proceedings undertaken by the CLB that warrant interference by this Court under Article 226 of the Constitution of India. In such a case, holding that the entire proceedings before the CLB in which the liti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erappa and Anr. v. Karnataka Cement Pipe Factory and Ors. 2004 (2) SCC 473 and Savitri Devi v. District Judge, Gorakhpur and Ors. 1999 (2) SCC 577, where such action has been deprecated. In an order in the related matter, concerning the very same facts which engaged the attention of this Bench where the order of the CLB dated 16.09.2013 in C.P.110(ND)13 was questioned, learned Single Judge, by the decision dated 30.09.2013 (in W.P. 6002/2013) deprecated an identical conduct by the very same petitioners. He also directed strict compliance with the law declared by the Supreme Court in Savitri Devi (supra) and Fakeerappa (supra). 11. It goes without saying that the petitioners may, in accordance with law, pursue their caveat application, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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