Il&Fs Transport Networks Ltd vs Regional Airport Holding ...
- CitationComp. App. (AT) No.314 of 2017
Ratio decidendi
The rule this decision rests on
The Tribunal, having already permitted the petitioner to place subsequent facts on record by way of additional affidavit, is not bound to entertain at the final hearing stage an amendment of pleadings or an impleadment application that could have been raised earlier; a belated application to implead parties in a company petition pending for five years, of which the petitioner had knowledge, cannot be accepted. Persons who are not members of the company are not properly impleaded in proceedings under the oppression and mismanagement jurisdiction, so an application to implead them on that basis is not maintainable. Under sub-section (1) of Section 242 of the Companies Act, 2013, the Tribunal's power to pass such order as it deems fit in cases of oppression and mismanagement is not restricted by the pleadings, so it may take notice of facts coming to its attention, but this power does not warrant reopening the pleadings of a long-pending petition at the stage of final hearing.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Il&Fs Transport Networks Ltd vs Regional Airport Holding ... on 22 September, 2017 NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI Comp. App. (AT) No.314 of 2017 In the matter of: IL&FS Transport Networks Ltd. ...Appellant Vs. Regional Airport Holding International Ltd. & Ors. ...Respondents Present: For Appellant: Shri Vidut Bhatia, Aldripsit Mishra and Shri Ritin Rai, Advocates For Respondents: None for the Respondents ORDER 22.09.2017 This appeal has been preferred by the appellant against order dated 9th August, 2017 passed by National Company Law Appellate Tribunal, New Delhi Bench which reads as follows: "Ld. counsel for the respondents submits that they would be seeking discharge in this case. Ld. Counsel for the petitioner submits that CA 162/17, an application for amendment of the petition is pending whereby it is proposed to bring certain subsequent facts on record. Let the same be filed by way of an additional affidavit. All relevant fact which are relevant for adjudication of this case shall be taken into consideration. Court notice issued to the respondents for final arguments returnable on 25th September, 2017." From the impugned order, it is clear that the Tribunal has already allowed the appellant to bring the subsequent facts to the notice of the Tribunal by way of additional affidavit.
Learned counsel appearing on behalf of the appellant submits that the directors of the company also colluded with the respondents and, therefore, they are also required to be impleaded as party respondents. Such submissions cannot be accepted after five years of filing of the company petition, the appellant having knowledge about the same. This apart, the persons with regard to whom the application for impleadment has been filed are not the members of the company. In any case, as the Tribunal has power to pass any order 'as it deem fit and proper' under sub-section (1) of Section 242 of the Companies Act, 2013, in case it comes to its notice that there is oppression and mismanagement, the question of amendment of pleading in the petition which is pending since last five years at this stage of final hearing does not arise. If the appellant has not filed the additional affidavit, they may file it by 3rd October, 2017. The parties are to cooperate with the Tribunal for early disposal of the case. In absence of any merit, the appeal is dismissed. No cost. (Justice S.J. Mukhopadhaya) Chairperson (Justice A.I.S.
Cheema) (Balvinder Singh) Member (Judicial) Member(Technical) /rs/
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