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Manohar Kakumal Keshwani & Ors vs Kishore Kakumal Keswani

National Company Law Appellate Tribunal8 February 2021

Ratio decidendi

The rule this decision rests on

An interim order that directs the continuance of a company's hotel operations, without identifying which party was in control and management of the hotel before the discontinuance and without specifying against which party the restraint on interference operates, is too vague to be sustained and must be set aside. The Tribunal is required, after affording the parties an opportunity to be heard, to decide the matter afresh by a reasoned and specific order containing clear findings.

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. 10 of 2021

In the matter of: Manohar Kakumal Keshwani & Ors. ....Appellants Vs. Kishore Kakumal Keswani ....Respondent

Present For Appellants: Mr. Virender Ganda, Sr. Advocate along with Mr. Aman Choudhary & Mr. Nirnay Gupta.

For Respondent: Mr. Manoj Harit, Advocate.

ORDER

(Virtual Mode)

08.02.2021: Learned Counsel for the Appellant submits that Ld. NCLT,

Mumbai while passing the impugned order dated 12.11.2020 failed to

consider that AGM had already taken place on the same day before hearing

the Petition. The Impugned order is in the nature of an interim mandatory

injunction, which was not a requisite for protecting the rights, if any of the

Respondents. The impugned order directs that continuance of operations of

Hotel after restarting as it was run before discontinuance of operations due

to Covid-19 pandemic. The impugned order is vague, it is not clear that which

party was in control and management of the Hotel before the Covid-19

Pandemic. It is also submitted that before passing of the impugned order, no

opportunity was given to the Appellants to file Written Reply. Therefore, this

order deserves to be set aside.

2. Learned Counsel for the Respondents submit that if we read the

impugned order alongwith the documents then it is clear that the

Respondents were in control and management of the Hotel before the Covid-

19 Pandemic. Therefore, no interference is called for in this order.

3. we have gone through the impugned order, operative portion of the

impugned order is under:-

"Accordingly, this bench hereby orders the continuance of operations of the Hotel after restarting, as it was run before discontinuance of operations due to Covid-19 Pandemic. No interference will be made in the operation of the Hotel by any party which is not involved in the day to day operations of the hotel."

4. From bare reading of this order, it is not clear, which party was

operating and managing the Hotel before discontinuance of operations due to

Covid-19 Pandemic. It is also not clear against which party the order is passed

that they will not interfere in the day to day operations of the Hotel.

5. Thus, the impugned order is set aside, Ld. Tribunal is directed that after

affording opportunity to the parties, hear the matter again and pass reasoned

and specific order with clear findings.

6. Thus, the Appeal is disposed of, however, no order as to costs.

7. The matter is listed for final hearing on 10th February, 2021

8. The Registry is directed to send the copy of this order to the Tribunal

for compliance.

[Justice Jarat Kumar Jain] Member (Judicial)

[Dr. Ashok Kumar Mishra] Member (Technical) SC/Kam

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