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TMI Blog2024 (8) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... d Status Report as to the outcome of the proceedings conducted so far and the specify action(s), if any, proposed to be taken to streamline the running of the affairs of respondent No.2. As requested by learned Counsel for respondent No.1, two weeks time is granted to file an updated Status Report. - HON'BLE MR. JUSTICE DHARMESH SHARMA For the Petitioner : Mr.Parag Tripathi, Sr. Adv. with Mr. Annirudh Sharma, Mr. Srinivasan Ramaswamy, Mr. Shikhar Gupta, Ms.Sonali Sharma and Ms.Devika Mohan, Advocates For the Respondents : Mr. Raj Shekhar Rao, Sr. Adv. with Mr. Avishkar Singhvi, Mr. Keshav Sehgal, Mr. Shivam Gaur, Mr.Kshitij Joshi and Mr.Aryan Kumar, Advs. Mr. Sidharth Luthra, Sr. Adv. with Mr. Dhruv Chawla, Mr. Ayush Agarwal, Mr. Karl P. Rustomkhan, Mr.Suhail Ahmed and Ms.Yuganshi Singh, Advocate for R 3-4 ORDER DHARMESH SHARMA, J. (ORAL) CM APPL. 40551/2024 (STAY) 1. On the last date of hearing i.e., 22.07.2024, arguments had been addressed by Mr. Parag Tripathi, learned Senior Counsel for the petitioner/Evaan Holdings Private Limited and part arguments were addressed by Mr. Raj Shekhar Rao, learned Senior Counsel for respondent No.2/Exclusive Capital Limited on 22.07.2024. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... writ directing Respondent No. 1 to take appropriate action against Respondent No. 2 under Section 45MB including prohibiting Respondent No. 2 from accepting any deposit and also restrain Respondent No. 2 from selling or in any manner encumbering its property(ies) or asset(s); Pass any other/ further order(s) which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case. 4. At the outset, it may be stated that two of the shareholders of respondent No.2 are already up in arms against the respondent No.2/Exclusive Capital Limited and the aforesaid three Directors and the issues concerning the operation and mismanagement in the affairs of the company, has been agitated in CO. PET. 48/(ND)/2024 before the National Company Law Tribunal [ NCLT ], in which, respondents No. 3 to 6 are also parties and vide order dated 15.05.2024, the NCLT passed the following directions: 73. In the aforementioned conspectus, we are convinced that the present case warrants appointment of Ld. Administrator to manage the function and affairs qua the Respondent No.1. In the wake, Hon ble Mr. Justice R.K. Gauba, a former Judge Delhi High Court is appointed as Administrator qua t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard of Directors and running the affairs of the company. While doing so, the Ld. Administrator would consult all stakeholders. In the meantime, the Ld. Administrator will file a monthly report regarding the affairs of the Respondent No.1 before this Tribunal, by way of IAs. I. An appropriate application for approval of the scheme/plan to be evolved by Ld. Administrator (as above) shall be filed before this Tribunal by way of an IA, before expiry of 180 days. Nevertheless, if circumstances warrant, an application for extension of time may be filed by the Ld. Administrator. During this period, the Ld. Administrator will file a report at the end of every month apprising this Bench of the development during the month. J. The Ld. Administrator shall do all acts as necessary, keeping in view the complications involved in the present case. K. All parties are directed to cooperate with the Ld. administrator and the management of Respondent no.1 are directed to make available all documents information requisition by the learned administration. L. The Ld. Administrator would be entitled to same pay, allowances and facilities as are admissible to CEO/MD of the Respondent. M. The Ld. Administr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome under the scanner of RBI. Therefore, it was urged that the provisions of Chapter III B of the RBI Act are complete Code in itself and the same are not controlled by any other provisions of law. 7. Learned Senior Counsel for the petitioner, taking this Court through the provisions of Section 45-ID and 45MA of the RBI Act, urged that it is a stark case where respondent No.2, which is an NBFC, instead of engaging in the business of finance and lending, are carrying out its affairs in such a manner where the present management is using the precious funds of the company for their own benefit, thereby indulging in gross financial irregularities by siphoning off the funds to related parties and companies and in the process, fabricating and forgoing the accounts of respondent No.2. It was vehemently urged that there is no Managing Director of respondent No.2 and alluding to its complaints dated 24.05.2024 and 21.06.2024, it was pointed out that the present management, headed by Mr. Satya Prakash Bagla, has been involved in purchase of luxury cars to the tune of more than Rs. 25.36 crores and purportedly, taking loans from different parties including the banks and instead, showing repay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een urged that the scope of judicial review is very limited and this Court cannot venture into the technical issues particularly when the same are in the domain of economic or financial matters and the matter should be left to the experts. Reliance is placed on decisions in Prestige Lights Ltd. v. State Bank of India (2007) 8 SCC 449 ; Raghav Buildcon Private Limited v. UOI 2016 SCC OnLine Del 3767 ; Akshay N. Patel v. Reserve Bank of India (2022) 3 SCC 694 ; and Vishal Tiwari v. Union of India (2024) 4 SCC 115 . 11. Mr. Sidharth Luthra, learned Senior Counsel for respondents No. 3 to 6 was mercifully brief. He alluded to the averments filed by respondent No.4 in the reply in the proceedings before the NCLT, whereby instances of gross mismanagement and arbitrary decisions on the part of the present management had been brought to the fore and in essence, substantiating the alleged aspects of financial irregularities and arbitrary sacking of the Managing Director others at the hands of the present management inter alia pointing out that as per the NBFC guidelines, the present management is not even qualified to run its affairs. ANALYSIS DECISION : 12. Having heard the learned Senior ..... X X X X Extracts X X X X X X X X Extracts X X X X
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