Eastern Tea Estates Ltd vs Gaurangika Patel & Ors
- CitationCOMPANY APPEAL (AT) NO.23 OF 2018
Ratio decidendi
The rule this decision rests on
Where mixed questions of law and fact are raised as objections to a company petition, they cannot be decided as preliminary issues under Order XIV Rule 2(2) of the Code of Civil Procedure, and the Tribunal may direct that the parties' arguments on both law and facts be heard simultaneously with the main petition. Where the Tribunal has directed simultaneous hearing of such objections, an appellate challenge to that direction fails, and the objecting party's remedy lies in the final adjudication of the petition: if the objections are upheld there, the party obtains the benefit accordingly, so no interference with the interlocutory order is warranted.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Eastern Tea Estates Ltd. .. Appellant Vs Gaurangika Patel & Ors. .. Respondents
Present:
For Appellant:- Mr. Jayant Mehta, Mr. Anurag Kumar, Mr. Rakesh Sarkar and Mr. Rahul Kukhreja Advocates
For Respondent Nos. 1-5: Mr. Pankaj Bhatia, Mr. Ashish Choudhury, Mr. Dhrub Surana, Mr. Ravi Panwar and Mr. Nipun Goel, Advocates
For Respondent No. 6: Mr. Sakya Sen, Mr. Arik Banerjee, Mr. Rajib Mullick, Advocates
ORDER
19.01.2018 - Learned Counsel for the Appellant submits that there is delay
of seven days in refiling of the appeal. Learned Counsels for the Respondents
present do not object. The delay in refiling is condoned.
(2) Heard the learned Counsel for the Appellant and perused the
impugned order. Learned Counsel for the Appellant submits that the
Appellant is third party who has nothing to do with the dispute between the
Directors and members of the Company.
(3) According to the learned Counsel for the Appellant, the Appellant
is in possession of the property of the Company by way of registered Charge
COMPANY APPEAL (AT) NO. 23 OF 2018 1 and thus the Appellant is not necessary party before the NCLT. Learned
Counsel further submits that the Appellant also had claimed that the matter
was time barred as regards the Appellant. Learned Counsel for the Appellant
referred to Sub Sections 242(2)(e) and 242(2)(f) which reads as under:
"242. Powers of Tribunal
.....
(2) Without prejudice to the generality of the powers under
sub-section (1), an order under that sub-section may provide for -
...
(e) the termination, setting aside or modification, of any agreement,
howsoever arrived at, between the company and the managing
director, any other director or manager, upon such terms and
conditions as may, in the opinion of the Tribunal, be just and
equitable in the circumstances of the case;
(f) the termination, setting aside or modification of any agreement between the company and any person other than those referred to in clause (e):
Provided that no such agreement shall be terminated, set aside or modified except after due notice and after obtaining the consent of the party concerned."
(4) Learned Counsel for the Appellant submits that looking into the
above proviso, the Appellant although he is "party concerned" referred to in
the proviso, he has not consented for modification etc. of the lease.
COMPANY APPEAL (AT) NO. 23 OF 2018 2
(5) Learned Counsel for the Appellant further submits that the
Appellant had also disputed the locus of the Respondents to maintain the
Company Petition.
(6) We have gone through the appeal and the records. Paragraph 18
& 19 of Impugned Order reads as under:
"....
18. Rather such questions appear to be mixed questions of law and facts and, therefore, in terms of law, laid down in Order XIV Rule 2(2)(a) and (b) of the CPC, such questions cannot be taken as preliminary issues. Therefore, as held in the order dated 9th December, 2016 rendered in SLP No. 29566/2012 by Hon'ble Apex Court of the Country as well as by Hon'ble NCLT in Anup Kumar Agarwal & Anr. (supra), the controversies, projected through the company petition as well as all the demurer applications, being mixed question of law and facts, are required to be taken up for consideration simultaneously.
19. In such a scenario, I have no other option but to direct learned Advocates appearing for their respective parties to advance their arguments both on law points and on facts simultaneously."
(7) Looking to the submission being made and the impugned order
which has been passed, (a part of which has been reproduced,) there is no reason
why the Appellants should not advance argument on law and facts as called
upon by NCLT. Admittedly the application raising objections by the Appellant
has been filed. Apparently, if NCLT while deciding the matter finally if it upholds
objections raised by the Appellant, it would give benefit accordingly and no
COMPANY APPEAL (AT) NO. 23 OF 2018 3 orders of ours are necessary. We do not find any reason to interfere with the
impugned order.
(8) There is no substance in the appeal. Appeal is dismissed.
(9) The Company Petition be heard and decided expeditiously by NCLT.
(Justice A.I.S. Cheema) Member(Judicial)
[Justice Bansi Lal Bhat] Member (Judicial)
Akc/Nn
COMPANY APPEAL (AT) NO. 23 OF 2018 4
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