Calcutta Cricket & Football Club vs Mr. Karan Singh Grewal & Ors
- CitationComp. App. (AT) No. 159 of 2025
Ratio decidendi
The rule this decision rests on
Where an interim direction in an application is not supported by any prayer made in that application or by the earlier orders, and the same relief was previously refused, the Adjudicating Authority has no occasion to issue such a direction, and it is liable to be deleted in appeal. An interim direction that protects only the applicants who moved the application cannot be extended by observation to bind the Club or its members generally, and an observation made without any occasion for it may be set aside. A direction requiring a company to adhere to its Articles of Association in disciplinary matters, already issued by an earlier order, continues to operate under that order and need not be repeated in a subsequent order.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: The Calcutta Cricket & Football Club ...Appellant(s)
Versus Karan Singh Grewal & Ors. ...Respondent(s)
Present: For Appellant : Mr. Gaurav Mitra, Mr. Ankur S. Kulkarni, Ms. Sonia Dube, Ms. Kanchav Yadav, Ms. Divyansha Gajallewar, Adv. Tanisha Sharma and Ms. Lavanya Pathak, Advocates.
For Respondents : Mr. Siddhartha, Mr. Karan Mamgain, Mr. Dhananjay Sahai, Mr. Lokesh Nandan and Ms. Nandita Seth, Advocates.
ORDER
(Hybrid Mode)
24.11.2025 Heard Shri Gaurav Mitra Ld. Counsel appearing for the
Appellant and Shri Siddhartha Ld. Counsel appearing for the Respondent
No.2 & 3.
This appeal has been filed against an order dated 04.07.2025 passed
by NCLT, Division Bench Court-I, in I.A. No. 44 of 2025. When this appeal
was taken for consideration this Tribunal has passed following order dated
23.07.2025:
"23.07.2025: Shri Gaurav Mitra Ld. Counsel appearing for the appellant submits that order dated 04.07.2025 passed by Adjudicating Authority is not in accord with the earlier order passed by NCLT itself on 30.09.2024. He however submits that in paragraph-24 interim order in a general term has been issued whereas the application was filed by only two members. He further submits that there was no occasion to issue observation in paragraph-25. Ld. Counsel for the respondent pointed out to the order of Hon'ble Supreme Court dated 18.07.2025 in Civil Appeal No. 6604/2025 where Supreme Court on 18.07.2025 has passed following order:
"O R D E R
1. Appeals are admitted for hearing.
2. Learned counsel for the respondent(s) prays for and is allowed two weeks' time to file counter affidavit.
3. List this matter for hearing on 06.08.2025. 2 of 2 Company Appeal (AT) (Ins) No. 159 of 2025.
4. In the meantime, in modification to this Court's earlier order dated 19.05.2025, it is hereby directed that the National Company Law Tribunal (NCLT) shall not proceed further with the company petition till the next date of hearing."
2. The order impugned was passed on 04.07.2025 i.e. prior to direction of Hon'ble Supreme Court. We however are of the view that the observations in paragraph-24 at best can confine only to the applicants. We are of the view that directions under paragraph-24 should protect the applicants who had filed the IA No. 44/2025 and there was no occasion to issue observations in paragraph-25 hence paragraph-25 of the order shall remain stayed.
3. Issue Notice to the Respondents through Speed Post as well as Email. Requisites along with process fee, if not filed, be filed within two days.
4. Let Reply be filed within two weeks. Rejoinder, if any, may be filed within two weeks, thereafter."
2 of 5 Ld. Counsel for the Appellant submits that the proceedings under
Section 241 & 242 of the Companies Act, 2013, which was initiated by four
Members of the Club is now pending in the Hon'ble Supreme Court where
Hon'ble Supreme Court has passed modified interim order on 18.07.2025 by
which direction proceedings under Section 241 & 242 pending before the
NCLT has been stayed. It is submitted that the I.A. No. 123 & 164/KB/2024
was filed by Respondent No.2 & 3 in the Company Petition praying for various
reliefs in which I.A. reliefs prayed by the Respondent No. 2 & 3 where not
granted, however, NCLT directed the Club to strictly adhere to its Articles of
Association while attempting to initiate, conduct and conclude any
Disciplinary Proceedings against its Members. Ld. Counsel for the Appellant
has referred para 31 of the order, which is as follows:
"In light of the above, we direct the Club to strictly adhere to its Articles of Association while attempting to initiate, conduct and conclude any Disciplinary Proceedings against its Members or suspend its Members and in doing so review the disciplinary action against the applicants thus far on the touch stone of the AoA, where some lacunae do appear to have occurred as brought out herein above."
Submission of the Appellant is that the said order was passed on
30.09.2024, subsequently another application. I.A. No. 44 of 2025 has been
filed by the Appellant making substantially the similar reliefs which was
prayed earlier and Adjudicating Authority after considering the application
has directed following in para 24 & 25.
3 of 5 "24. In regard to the smooth functioning of the club, the above Clauses require to be strictly adhered to. Yet, despite Orders, it is observed that the club has caused show cause notice for suspension of the members when the election dispute of 2024 is still not over. Hence, we direct that no adverse action be taken by the club against its members, till the issue is pending before the Hon 'ble Supreme Court is decided.
25. In case the club fails to comply with the Clause as mentioned above, in running of its administration, this Tribunal will not hesitate to appoint an administrator to smoothly run its administrative affairs till the matter is decided by the Hon 'ble Apex Court."
It is submitted that the direction in para 24 that no adverse section be
taken by the Club against the Members are unsustainable since only show
cause notice has been issued against Respondent No.2 and disciplinary
proceedings have yet not been concluded. It is further submitted that there
was no occasion to make observation in para 25 and this Tribunal has already
passed on interim order staying the said observation.
Ld. Counsel for the Respondent submits that the Club is obliged to
follow the articles of association of the club in any disciplinary proceedings
against the Respondent No.2 & 3.
We have heard Ld. Counsel for the parties and perused the record. The
earlier order passed by the NLCT on IA's filed by the Respondent No. 2 & 3
dated 30.09.2024 has already directed the Club to strictly adhere to its
4 of 5 Articles of Association while attempting to initiate, conduct and conclude the
disciplinary proceedings against its Members.
NCLT having already issued direction to the Club to adhere to its
Articles of Association and has not granted. Prayers made by Respondent No.
2 & 3 in its earlier application in I.A. No. 123 & 164 of 2024, there was no
occasion to issue any direction to the Club not to take any coercive action
against Members, since by order dated 30.09.2024. Prayers of the Respondent
No. 2 & 3 to the Club from taken any action against Respondent No. 2 & 3
was refused. There was no occasion to pass direction as contained in para 24
of the order. We, thus, are of the view that observation and direction, in para
24 & 25 need to be deleted from the impugned order.
As far as, the submission of the Respondent that the Club is to strictly
adhere to the Articles of Association, the said direction is already operating
under order dated 30.09.2024. In view of the above, we dispose of the appeal
by modifying the order dated 04.07.2025 by deleting para 24 & 25 from the
order.
The appeal is disposed accordingly.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical) Abhishek/md
5 of 5
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