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Narendar Kumar Bhoot vs Naval Kumar Bhoot

National Company Law Appellate Tribunal10 September 2024

Ratio decidendi

The rule this decision rests on

An order passed against a person who was neither a party to the proceedings nor given notice of them, and which affects that person's office and status, is contrary to the principles of natural justice and cannot stand; it is liable to be set aside in its entirety with all its consequential effects. Where an impugned order has been passed without impleading and hearing an affected party, the appellate authority may set it aside and remand the matter to the adjudicating authority to decide afresh after affording the affected parties adequate opportunity of hearing, without thereby examining the merits of the underlying case.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH,NEW DELHICompany Appeal (AT) No. 02 of 2021 &I.A. No. 1256 of 2021IN THE MATTER OF:

Narendra Kumar Bhoot ...Appellant

Vs.

Naval Kumar Bhoot & Ors. ...Respondents

Present:

For Appellant: Mr. Anuj Tiwari, Mr. Rahul Kumar, Ms. Monika,

Advocates

For Respondents: Mr. Ankit Vashisht, Advocate

ORDER

(HYBRID MODE)

10.09.2024: This appeal is against the impugned order dated

15.12.2020 in CP No. 3852/2019 wherein the following relief was sought:-

"a. To declare Sri Santosh Kumar Bhoot (DIN: 00759296)

and Shri Narendra Kumar Bhoot (DIN: 00759185) as

disqualified director under Section 164(2)(a) and has

vacated their office under Section 167 of the Companies

Act, 2013.

b. To appoint the Applicant, Navalkumar Bhoot (DIN:

00759224) and Shri Vishnu Prasad Sankle (DIN: 1 Company Appeal (AT) No. 02 of 2021 & I.A. No. 1256 of 2021 07895719) or any other two independent persons as

Directors of the Respondent No.3 as this Hon'ble Tribunal

may deem proper:

c. To give necessary directions to respondent nos. 1 and 2

to give effect to the orders of this Hon'ble Tribunal;

d. To direct the Respondent Nos. 1 and 2 not to take on

record any filing of Forms if filed by Shri Santosh Kumar

Bhoot (DIN: 00759296) and Shri Narendra Kumar Bhoot

(DIN: 00759185) as they are disqualified directors and have

vacated their office:

e. To pass such order or orders as this Hon'ble Tribunal

may deem expedient".

2. Admittedly, the Appellants viz. Mr. Santosh Kumar and Mr. Narendra Kumar

were not parties in CP No. 3852/2019 and admittedly, no notice was sent to them.

The impugned order requires ROC to disqualify both of them u/s 164(2)(a) and to

vacate their office u/s 167 of the Companies Act, 2013. Further, vide the impugned

order the Respondents were appointed as Directors.

3. It is the submission, the order is against the principles of natural justice since

was passed against the Appellant without making him the party in the Company

Petition and without any notice given to him. 2 Company Appeal (AT) No. 02 of 2021 & I.A. No. 1256 of 2021

4. We are in full agreement with the contention of the Learned Counsel for the

Appellant in so far as impugned order is passed against the principles of natural

justice. The impugned order is set aside consequently with all its implications.

However, this order shall not preclude the Respondents to seek amendments in the

company petition to implead parties thereof. The matter is remanded to the Ld. NCLT

to proceed further. It is clarified that we have not examined the merits of the case. Ld.

NCLT may expeditiously decide the petition after giving adequate opportunity of

hearing to the Appellants herein.

5. Appeal disposed of in terms of above. Pending applications are also disposed

of.

[Justice Yogesh Khanna] Member (Judicial)

[Mr. Ajai Das Mehrotra] Member (Technical)

ss/kam

3 Company Appeal (AT) No. 02 of 2021 & I.A. No. 1256 of 2021

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