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2011 (4) TMI 1480

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..... to be argued on 4th 13th May at 10:30 a.m. and on 9th May 2011 at 2:30 p.m. The ground of appeal is that the Board could not have ordered Company Application No.210/11 to be heard along with the company petition. On the face of the order, no question of law arises from it. But after hearing the argument of the learned Counsel for the respective parties, it seems that some question of law arises from this order. It is submitted on behalf of the appellant that their application, CA No.210/11 is in the nature of an application under Order 7 Rule 11 of the Code of Civil Procedure. Therefore, it has to be heard first. Learned Counsel for the respondent shows me an order made by this Court on 11th January, 2011, disposing of an earlier a .....

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..... n exercise powers under CPC other than those conferred under section 10E(4C) of the Companies Act. Therefore, he submits that the Company Law Board has no power to determine any preliminary issue. It is true that Section 10E (4C) of the Companies Act, 1956, specifies certain powers of a Civil Court to be vested in the Company Law Board. Power and procedure are, in my judgement, completely different concepts. By Section 10E (4C) certain coercive powers of the Court are conferred on the Company Law Board. But the procedure followed by the Court are certain rules of justice which are followed by it to deal with a case. Section 141 of the Code of Civil Procedure makes it absolutely plain that the procedure provided in the Code with re .....

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..... t can be clearly shown that the company petition can be dismissed, the Company Law Board will decide accordingly and dismiss the company petition. If the contrary is the case, the Company Law Board will dismiss that application and proceed to hear the company petition. If, after perusal of the said application, the Company Law Board is of the opinion that it is not possible to make a final decision on the basis of the papers contained in it, then the Company Law Board will hear this application along with the company petition. But it is essential that the Company Law Board should come to a decision in CA No.210/11 first. Such decision should be arrived at as quickly as possible so that the time period mentioned in the earlier order of this .....

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