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City Hospital Pvt. Ltd & Anr vs Mohan Paul & Ors

National Company Law Appellate Tribunal10 October 2017

Ratio decidendi

The rule this decision rests on

The order affirms on the merits the Tribunal's direction under the Companies Act provision for rectification of the register, and sets aside only the portion imposing costs of Rs.50,000 on the appellant, on the ground that the appellant had already complied with the Tribunal's direction, so that the costs imposition could not stand.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHICompany Appeal (AT) No. 214 of 2017IN THE MATTER OF:

City Hospital Pvt. Ltd & Anr. ....Appellants

Vs

Mohan Paul & Ors. ....Respondents

Present: For Appellants: Ms. Rohini Musa, Advocate

For Respondents: Shri T. K. Shajahan, Advocate R-1

ORDER

10.10.2017: This appeal has been preferred by appellants against order

dated 7th June 2017 passed by National Commission Law Tribunal, Chennai

Bench, Chennai (hereinafter referred to as 'Tribunal') in TCP No. 226 of 2016

(C.P. No. 2 of 2015). By the impugned order, the application preferred by

respondent Mohan Paul under Section 111A of the Companies Act, 1956 (now

Section 59 of the Companies Act, 2013) has been allowed and cost of

Rs.50,000/- have been imposed on the 1st Appellant.

2. On 1st July 2017, the Appellate Tribunal on consideration of the merits of

the appeal and on hearing the learned counsel for the appellant issued limited

notice on the respondent insofar it relates to imposition of cost. The order

dated 12th July 2017 reads as follows:-

"On hearing the appellant, we find that the appellant will otherwise not be affected, if the 45 numbers of equity shares issued in the name of the first respondent/ petitioner. However, we issue limited notice on respondents in so far it relates to imposition of the cost on the appellant. Requisite along with process fees, if not filed, be filed by tomorrow i.e. 13th July, 2017. If the appellants provide e- mail address of the respondents, let notice be also issued through e- mail.

Post the matter on 25th July, 2017. In the meantime, the imposition of cost of Rs.50,000/- as imposed on the appellant by the impugned order shall remain stayed."

Learned counsel appearing on behalf of 1st Respondent submits that the

order of the Tribunal has been complied by appellant in its letter and spirit.

Respondents have no say in the matter of imposition of cost.

Having heard the learned counsel for the parties and taking into

consideration that the appellant has already complied with the order passed by

the Tribunal, while we affirm the impugned order on merit set aside last

portion of the impugned order dated 7th June 2017 so far as it relates to

imposition of cost of Rs.50,000/- on the appellant. The appeal is allowed to the

extent above.

(Justice S. J. Mukhopadhaya) Chairperson

(Justice A.I.S. Cheema) (Balvinder Singh) (Member (Judicial) Member (Technical)

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