M/S A.J. Prakashan Pvt Ltd & Anr vs Smt. Poonam Gupta & Ors

{fhereinafter referred to as Tribunal) reitersting the carlier directions

issued by the erstwhile 'Company Law Board' dated 8 January

ay

and 42 March 2016 allowed the Respondents to inapert the records of

2016

the respective companies in the presence of the Regienal Director,

LLL thts

Northern Region, Ministry of Corporate Affairs, Lucknow, T he Offre af the Regional Director, Northern Region, has been directed to inform the police officers, if so necessary, seeking cooperation to madmtain the law and order position in completing the task and for smooth conduct of

the inspection of recerds.

On bare perusal of the orders, we find that there is a dispute between the members of the family. Respondents, wife and two sors have filed different Company petitions under Section 397 and 396 of the Companies Act, 19565 alleging oppression an d mitomanagement by

the 2-3 Appellant, husband /father.

The Carmpany Potiiions were fled in the year 2012 before the

erstwhile Carmpany Law Bos ard remained Bp In ar

application filed by the Respondents, the Com pany Law Soard by order

& ta pie pect the records

dated 8® January 2016 allowed the Responder nik

and the Appellants were directed to provide inspection to the

Respondents'-Petitioners within iS days. For one or other reason

inspection could not take place. While one party allege that the other party had not reported within the time, the other party allege torture

and coercion. The ee aa were followed by orders add dated 4%

%

March 20 16 wherem f » Coewpar yy Law Board reiterated its earher

direction and allowed the Respondents to inspect the records.

Second time alse for some dispute, the inspection could not take place. This resulted in Gling fresh applcatiors in each of the petitions and the Tribunal by impugned orders all dated 30" January 2017 allowed inspection af records of each of the companies with direction to Appellants', to allow therm to inspect in the presence af Regional

Director, Ministry of Corporate Alfsirs, Northern. Region.

Ld. Counsel appearing ¢ an behalf of Appellants submits that the

Resporuients are not directors and therefpre they are not entitled for

inspection. On the other hard, avcerding te the faunsel for the Respondents, they have right to inspect as they were tlrectors at the

time of Gling of the petitions.

In these appeals we are not Inclined te deliberate on the issurs as to whether the Respondents are directors or not and whether the Company Petitions are maintainable. [It is required ta be decided by

the Tribunal taking imto consideration the relevant facts and after

hearing the parties. We have noticed that the Car sany Petitions are

pending for more than 5S years. Gme after another order has been

passed for inspection of records and because of th

between father on the one hand and mother and owe sons on the other

hand the inspection could not take place.

Under Section 429 of the Companies Act, 2013, the Tribunal was

required to dispose of the pe Hons within Qaumonths. In case of failure

the Trifrunal was required to give grounds & for not disposing the petition

within the time frame and alter pe isaion of the President of National

Company Law Tribunal, was required aSpose af the petitions within

the extended pericd, Now afier constitution of the Tribunal, about 9

months have passed but the matters are pending at the same stage as

was inthe year 2012.

in the facts and circumstances of the cases, while we are nul

inclined to interfere with ars of the impugned order (s} dated 30%

January 2017, dire set the parties to complete the Inspection in the

presence of Regional Olrector, Northern Region within three wee ES, The Regional DNrector is directed to ensure inspection of records within the fime scheduled. After three weeks, the Tritunsl without granting further time for inspection will deliberate inte the merit of the cases and if so required, direct the appellants te produce all the relevant

POCA,

It is Gaformed that there are two other Company Petitions pending

before the Tribunal between the same parties in respect of Owa other

~ te? BERS

comparties, The Tribunal will make endeavor to dispose off all of them

together, on an carly date. Al the appeals stand disposed of with

aforesaid observations and directions, Na coat.

iJustice S.J. Mukhopadhaya) Chairperson

(Mr. Balvinder Singh} Member (Technical)

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