Thoyajakshi Bai Sakranaik vs Patanjali Hospitals Private Limited
- CitationCompany Appeal (AT) (CH) No. 65/2025
Ratio decidendi
The rule this decision rests on
An interim order in proceedings under Sections 241 and 242 of the Companies Act, 2013 (or any judicial proceeding) is an absolutely discretionary remedy, granted only on establishment of a prima facie case, the balance of prejudice, and the applicant's entitlement to it; refusing it is not an adjudication of the rights in issue, which remain open for determination after pleadings and evidence. A party seeking equitable interim relief must come with clean hands; where the applicant's prima facie conduct has been in continuous breach of her service contract and she has failed to disclose parallel litigation, she cannot claim to be oppressed, and the refusal of interim relief on that ground does not warrant appellate interference.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
SMT. LATHA MUKUNDA RAO Director, Patanjali Hospitals Pvt. Ltd. Residing at: No.6, Gokula Bheemasamudra Road, 2nd Stage, Dhavalagiri Extension, Chitradurga - 577501 ...RESPONDENT NO. 3 Present : For Appellant : Mr. Vinay Kumar, Advocate For Respondents : Mr. Bharadwajaramasubramaniam R, Mr. Rishitha Kishan & Mr. Samjyor Lepcha, Advocates for Respondents No. 2 and 3.
Company Appeal (AT) (CH) No. 65/2025 Page 1 of 6 JUDGMENT
(Hybrid Mode) [Per: Justice Sharad Kumar Sharma, Member (Judicial)] The Appellant is the Applicant to the Proceedings of Company
Petition No. 127/BB/2023. She agitates her grievance being aggrieved as
against the impugned order dated 01.05.2025, as it has been passed by the
Ld. National Company Law Tribunal, Bengaluru Bench, whereby, post
hearing of the Company Petition, on 22.05.2025, the Ld. Tribunal had
declined to grant an Interim Order prayed for to the effect of keeping the
proposal of the proposed EGM of Respondent No. 1 in abeyance.
2. An interlocutory application, which seeks for grant of an interim order
in a pending proceeding under Sections 241 & 242 of the Companies Act,
2013, or for that matter, in any judicial proceedings before a court of law
engaging deciding a right of a party, is in the nature of an absolutely
discretionary remedy, which would be exclusively depending upon the
establishment of a fact and the right and the likelihood of prejudice, which
will be caused to the applicant who has applied for the grant of such interim
order.
3. In fact, in the finding which, has been recorded by the Ld. Tribunal
while declining to grant the interim order, as against the conduct of the
proposed EGM of Respondent No. 1 Company, it has observed that
Company Appeal (AT) (CH) No. 65/2025 Page 2 of 6
(a) The meeting of the Board of Directors of the company was
called vide their letter dated 29.04.2025, in which a resolution
to hold the EGM on 23.05.2025, for considering the removal of
the Appellant from the Directorship of the Company
(Respondent No. 1) was passed.
(b) As per, the Audit Report, submitted by the M/s. Yedida and
Associates, which was furnished by the Respondent's Advocate
the total amount collected in cash from the patients during the
period from 01.01.2021 to 31.03.2023, was Rs 1,38,52,270/-,
whereas the amount, remitted into cash counter of the hospital
was only Rs. 56,05,900/-, leaving an amount of Rs. 82,46,370/-
as allegedly retained by the Appellant which is allegedly
misappropriated by her.
(c) The Audit Report of M/s. Yedida and Associates is based on the
patient register and is not intended to single out the Appellant
as it also mentions about the other doctors in the Report.
(d) Despite having committed to function as a medical professional
with the Respondent Company based on the service contract,
the Appellant has engaged herself in taking outside patients and
providing them medical services on regular basis which were
Company Appeal (AT) (CH) No. 65/2025 Page 3 of 6 not permitted by the terms of the contract of employment of the
Appellant.
(e) The Tribunal has heard the submissions made on behalf of the
parties and perused the relevant materials on record.
4. The Ld. Tribunal has further noted that, it has also come on record,
that there are various other sets of litigation, which are simultaneously going
on between the parties, which would be apparent from the documents which,
has been placed on record, which the Appellant chose not to disclose even
during oral submissions and thus has not come with clean hands.
5. It has further observed that the resolution to appoint a Forensic
Auditor dated 22.04.2024, was not objected by the Appellant till she moved
to press upon the stay application for the grant of the interim relief.
6. Ld. Tribunal has further observed that the Appellant had functioned in
a fashion detrimental to the interest of the Respondent No. 1, to whom she
was contractually bound to render the services by changing over and above
what they have been billed at the hospital and therefore she cannot claim to
be oppressed and that by attending to patients in other medical facilities and
thereby promoting such facilities, may attract Section 166 of the Companies
Act, 2013.
Company Appeal (AT) (CH) No. 65/2025 Page 4 of 6
7. Looking into the findings as above and particularly the observations
that the Appellant has to come with clean hands for grant of equitable relief,
the rejection of the prayer for the grant of interim relief cannot be legally
faulted with, because the actions of the Appellant have prima facie have
resulted in continuous breach of service contract.
8. Besides that, the grant of an interim relief in a judicial proceeding, is
absolutely a discretionary remedy depending upon the establishment of the
prima facie case. It is not mandatory to exercise discretion by the court
exercising the judicial powers, in a manner expected by the Applicant to the
proceedings, for the grant of an interim relief. Owing to the apparent
commissions and omissions on part of the Appellant as recorded by Ld.
Tribunal being apparently in violation to the statute, the proceedings drawn
by way of carrying out the proposed Extraordinary General Meeting of the
Respondent Company does not appear to suffer from any legal vices. Apart
from it, rejection of the interim relief as prayed for, being of an interlocutory
nature, will not amount to be an adjudication of any of the rights, which is
still a subject matter of the appeal, as it would still be left open to be
independently decided after the exchange of pleadings and enabling the
parties to lead their evidence. Thus, a denial to grant the interim relief by the
impugned order of 01.05.2025 owing to the conduct which, was considered
by the Ld. Tribunal as unbecoming of a medical officer for Respondent No.
Company Appeal (AT) (CH) No. 65/2025 Page 5 of 6 1, to whom the Appellant owed an allegiance, does not suffer from any legal
vices and hence does not call for any interference.
9. Apart from the fact that, it is an interlocutory order, the impugned
order is based on sound reasoning, and the equity does not support the case
of the Appellant. The appeal is 'misconceived' and the same is accordingly
'rejected'
[Justice Sharad Kumar Sharma] Member (Judicial)
[Jatindranath Swain] Member (Technical)
06/06/2025 SN/MS
Company Appeal (AT) (CH) No. 65/2025 Page 6 of 6
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