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TMI Blog2019 (9) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Appellate Tribunal. From Section 425 of the Companies Act, 2013, it will be evident that the Tribunal as also the Appellate Tribunal have been empowered with the same jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the provisions of the Contempt of Courts Act, 1971 , which shall have the effect subject to modifications that in place of High Court, it should be read as Tribunal or the Appellate Tribunal; and in place of Advocate-General, it is to be read as Law Officers as may be specified by the Central Government. The Tribunal and the Appellate Tribunal are empowered to punish a person for violation of its own order under the Contempt of Courts Act, 1971 and are required to follow procedure prescribed under Section 14 of the Contempt of Courts Act, 1971 before holding a person guilty of having committed contempt of the Tribunal or the Appellate Tribunal - No appeal is maintainable under Section 421 of the Companies Act, 2013 once the Tribunal exercises its power under Contempt of Courts Act, 1971 read with Section 425 of the Companies Act, 2013. Thus, for n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Companies Act, 2013. 5. Apart from merits, the question arises for consideration in these appeals is whether an appeal under Section 421 of the Companies Act, 2013 is maintainable against an order passed by the Tribunal in exercise of powers conferred under Section 425 of the Companies Act, 2013 which empowers the Tribunal to initiate contempt proceeding for committing contempt of its own order. 6. Before going into the merits and for deciding the aforesaid issue, it is necessary to notice the relevant provisions of the Companies Act, 2013 as being discussed hereunder. 7. The National Company Law Tribunal ( Tribunal for short) and the National Company Law Appellate Tribunal ( Appellate Tribunal for short) have been constituted under Chapter XXVII of the Companies Act, 2013. The Tribunal has been constituted under Section 408 of the Companies Act, 2013 as quoted below: 408. Constitution of National Company Law Tribunal .─ The Central Government shall, by notification, constitute, with effect from such date as may be specified therein, a Tribunal to be known as the National Company Law Tribunal consisting of a President and such nu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -five days, if it is satisfied that the appellant was prevented by sufficient cause from filing the appeal within that period. (4) On the receipt of an appeal under sub-section (1), the Appellate Tribunal shall, after giving the parties to the appeal a reasonable opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The Appellate Tribunal shall send a copy of every order made by it to the Tribunal and the parties to appeal. 11. From the aforesaid provisions, it is clear that if the Tribunal passes order under Section 420 of the Companies Act, 2013, an appeal under Section 421 of the Companies Act, 2013 is maintainable before the Appellate Tribunal. 12. Section 425 of the Companies Act, 2013 empowers the Tribunal and the Appellate Tribunal to punish for contempt of themselves, as quoted below: 425. Power to punish for contempt .─ The Tribunal and the Appellate Tribunal shall have the same jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Tribunal and the Appellate Tribunal are empowered to punish a person for violation of its own order under the Contempt of Courts Act, 1971 and are required to follow procedure prescribed under Section 14 of the Contempt of Courts Act, 1971 before holding a person guilty of having committed contempt of the Tribunal or the Appellate Tribunal. 18. No appeal is maintainable under Section 421 of the Companies Act, 2013 once the Tribunal exercises its power under Contempt of Courts Act, 1971 read with Section 425 of the Companies Act, 2013. 19. There is a provision of appeal under Section 19 of the Contempt of Courts Act, 1971 , as distinct from Section 421 of the Companies Act, 2013, as quoted below: 19. Appeals (1) An appeal shall lie as of right from any order or decision of the High Court in the exercise of its jurisdiction to punish for contempt- (a) where the order or decision is that of a single judge, to a Bench of not less than two judges of the court; (b) where the order or decision is that of a Bench, to the Supreme Court: PROVIDED that where the order or decision is that of the Court of the Judic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Group of Companies, it is hereby directed that (a) both parties shall maintain the present status quo in regard to their shareholding and also fixed assets of all companies in Sanghi Group of Companies until further orders; and (b) any transfer of shares in Sanghi Group of Companies by either parties, in the interregnum period, would be null and void. 23. The Tribunal after notice and hearing the parties has come to a definite conclusion that the transfer was made as a step towards reaching possible settlement between the parties which is also the spirit behind the order dated 23rd October, 2008. 24. According to the Tribunal, the spirit behind the order was to enable the parties to enter into amicable settlement with regard to shareholding and assets in all the group Companies. Therefore, order was passed by the erstwhile Company Law Board for benefit of all the Group Companies. The Tribunal also observed that the order was passed to facilitate the parties to enter into settlement. In view of the fact that the order dated 23rd October, 2008 can be looked from two different angles, the Tribunal came to a conclusion that if the order is capable of interpreting in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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