Dr.Gurubasappa Siddesh & Ors vs Sigma Life Care (Mysore) Private ...
- CitationCompany Appeal (AT) (CH) No. 164
Ratio decidendi
The rule this decision rests on
Where a company petitioner seeks interim relief restraining his removal from directorship, but the removal decision (an EGM resolution) has not been challenged in the principal petition, no injunction preserving his continuance as director may be granted, because the relief is not tethered to any impugned act pleaded in the petition. Interim relief under the company-law appellate scheme will not be granted where it would contradict an existing order of a civil court vacating an earlier interim injunction on the same subject matter, particularly where the petitioner has pursued parallel civil proceedings and the Tribunal has found the later petition to be an instance of forum shopping. An appeal against only part of an order (the refusal of interim relief) is not decided on the question of whether the grant of time to file a counter-affidavit is separately challengeable; that question is expressly reserved and no ratio is laid down on it.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NATIONAL COMPANY LAW APPELLATE TRIBUNAL AT CHENNAI (APPELLATE JURISDICTION) Company Appeal (AT) (CH) No. 164 / 2025 (IA No. 1779 / 2025) In the matter of: Dr. Gurubasappa Siddesh, Aged about 67 years, S/o. Late Govinakovi Hosalli Gurubasappa Residing at `Guru Om', No. 897, Kanthraj Urs Road, Lakshmipuram, Mysore - 570004 .... Appellant No. 1
Mrs. Dr. Anjali Siddesh, Aged about 62 years, W/o. Dr. G. Siddesh, Residing at `Guru Om', No. 897, Kanthraj Urs Road, Lakshmipuram, Mysore - 570004 .... Appellant No. 2
V
Sigma Life Care (Mysore) Private Limited CIN : U85110KA2012PTC064265 A Company incorporated under the Companies Act, 1956, Having its registered Office at No. P/8-D, Kamakshi Hospital Road, Saraswathipuram, T K Layout, Chamarajamohalla, Mysore - 570009 .... Respondent No.1
Mr. Shivakumaraswamy Gnanashankar, Managing Director, M/s. Sigma Life Care (Mysore) Private Limited Aged about 67 years, Residing at No. 949 / B, IInd Main, Lakshmipuram, Mysore - 570004 .... Respondent No.2
Mrs. Rajeshwari Kavadichanda Madappa, Aged about 59 years, W/o. K.G. Madappa, Residing at : No. 2995, Hightension Double Road, Vijaynagar 2nd Stage, Mysore - 570004 .... Respondent No.3
Comp App (AT) (CH) No.164/2025 Page 1 of 6 Mr. Kavadichanda Muthappa Madappa, S/o. Late Sri. K.G. Muthappa, Aged about 64 years, Residing at : No. 2995, Hightension Double Road, Vijaynagar 2nd Stage, Mysore - 570004 .... Respondent No.4
Mrs. Shylashankar, Aged 60 years, W/o. S. Gnanashankar, Residing at: No. 949 / B, IInd Main, Lakshmipuram, Mysore - 570004 .... Respondent No.5 Present : For Appellants : Mr. A. Murali & Mr. KM. Vishakh Nag, Advocates For Respondents : Mr. Harish Narasappa, Senior Advocate For Advocates Saurav Sunil & Joel Jacob ORDER
(Hybrid Mode) 06.01.2026:
Oral Judgment : Justice Sharad Kumar Sharma, Member (Judicial):
The Appellant who happens to be the Petitioner in the Company Petition
No. 125 / BB / 2025, challenges the impugned order of 25.09.2025, as it was
passed in the aforesaid Company Petition, whereby, the interim relief as sought
in the Company Petition was declined to be granted in view of the findings, which
has been recorded by the Ld. Adjudicating Authority in the impugned order.
Simultaneously, by the same order, the Ld. Tribunal took cognizance to the
proceedings in the Company Petition and had recorded that the reply / objections
to the Company Petition may be filed, within two weeks by the Respondents.
Comp App (AT) (CH) No.164/2025 Page 2 of 6
2. The question would be, that as to whether, there could be a partial challenge
to the order, which has got twin fold implications with regards to the proceedings
of the Company Petition. In the first instance, it denied grant of any interim order
to the Appellant. Simultaneously, it granted time to the Respondents to file
Counter, which means that the Company Petition has been entertained and can be
said to be favour of the Appellant.
3. For the time being, we are deferring to record any finding on the said issue
as to what will be the impact of giving challenge to the part of order granting time
to file reply / call for counter on the Company Petition.
4. The impugned order itself displays the fact that, the Appellant had earlier
invoked the civil proceedings before the regular Civil Court by filing a Suit being
O.S. No. 974 / 2025, in which there was an earlier interim injunction granted
under Order XXXIX Rule (1) & (2) of the C.P.C. on 15.06.2025 which was later
on vacated by the Ld. Trial Court in the exercise of powers under Order XXXIX
Rule 4 of C.P.C. by an order passed on 15.09.2025.
5. It is seen that contradictory statements have been made during the
proceedings of this Company Appeal by the Ld. Counsel for the Appellant. First,
he states that, the Suit has been withdrawn, the suit has been withdrawn, which
has been strongly refuted by the Ld. Counsel for the Respondent contending
thereof that, in fact, the suit has not been withdrawn and it is still pending
Comp App (AT) (CH) No.164/2025 Page 3 of 6 consideration and his application under Order VII Rule 11 of C.P.C. is pending
consideration.
6. In that eventuality, it would be deemed that the subject matter of the
Company Petition is yet to be taken up in the Civil Court proceedings. However,
this aspect may not have any bearing as far as the issue pertaining to the challenge
given to the impugned order is concerned.
7. Primarily, the Interim Relief, sought by the Appellant in the Company
Petition, was that the Respondents be restrained from (i) removing the Appellant
from the Directorship of the Company and (ii) from terminating his position as
HoD / Consultant of the Hospital of the Respondent No. 1 Company which they
had proceeded on by their letter dated 15.09.2025.
8. It come to our notice that, the Appellant was removed from the
Directorship of the Company by the EGM, held on 03.10.2025, but, the decision
of EGM itself has not been made as a subject matter of challenge in the principal
Company Petition, as it was filed much prior to it on 18.09.2025. However, the
said relief has been attempted to be introduced by the Appellant. Later on, filing
a Company Application CA No. 186 / 2025 under Section 242(4) of the
Companies Act in CP No. 125 / BB / 2025, wherein he has made the prayer to
hold the EGM dated 03.10.2025 to be null and void.
Comp App (AT) (CH) No.164/2025 Page 4 of 6
9. We make it clear at this juncture itself that until and unless the decision of
the said EGM dated 03.10.2025, removing him from the Directorship of the
Respondent No. 1 Company to challenge in the principal Company Petition, there
cannot any injunction granted in favour of the Appellant for his continuance as a
Director.
10. Apart from it, if we examine the impugned order, we find that the Ld.
Tribunal has observed that the Appellant has indulged in Forum Shopping by
initially invoking the Civil jurisdiction under Section 9 of the CPC and getting an
ex-parte interim order and then upon vacation of the said Interim Order, has filed
the Company Petition alleging an act of filing of a Company Petition alleging an
act of Oppression and Mismanagement and that it will amount to be a malicious
proceedings.
11. Be that as it may. At this stage, if the relief sought for by the Petitioner in
the instant Company Appeal, is granted, it will be in contradiction to the order of
Ld. Civil Court dated 15.09.2025, vacating the Interim Order dated 16.06.2025
granted by it, for the reasons recorded therein.
12. Since, the Company Petition itself is pending consideration, there cannot
be a contradictory Interim Stay Order, as it was solicited by the Applicant in his
Company Petition in the relief sought therein, in context of his removal from the
Directorship of the Company.
Comp App (AT) (CH) No.164/2025 Page 5 of 6
13. In that eventuality, considering the reason, which has been assigned in the
impugned order and also considering the surrounding facts and circumstances,
which we have already dealt with hereinabove, we do not think that, it is a fit case
to interfere with the impugned order. Accordingly, the Company Appeal (AT)
(CH) No. 164 / 2025 lacks merit and the same is accordingly dismissed. The
connected pending Interlocutory Application, if any, would stand closed.
[Justice Sharad Kumar Sharma] Member (Judicial)
[Jatindranath Swain] Member (Technical)
SR/MS/AK
Comp App (AT) (CH) No.164/2025 Page 6 of 6
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