V R G Constructions Pvt Ltd vs Vijayalakshmi Venkatachalam
- CitationCompany Appeal (AT) (CH) No.16/2025
Ratio decidendi
The rule this decision rests on
An order permitting amendment of the relief clause in a petition, passed during the pendency of the principal proceedings, which does not decide any material right of the parties and leaves all objections open for the opposing party to raise before the Tribunal, is interlocutory in nature and does not constitute an "order" amenable to appeal under Section 421(1) of the Companies Act, 2013.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
6. Vairamani Aruna, Director M/s. V.R.G. Constructions (P) Ltd. No.134, A.V.M. Colony, 5th Cross Street, Virugambakkam, Chennai - 600 092. ...Appellants V
Comp App (AT) (CH) No.16/2025 Page 1 of 5 1. Smt. Vijayalakshmi Venkatachalam, W/o. Mr. Venkatachalam, D/o. Late Shri V. Rangaswamy, No.1, Srinivasa Nagar, Maduravoyal, Chennai - 600 095.
2. The Registrar of Companies, Shastri Bhavan, 25, Haddows Road, Chennai - 600 034.
3. Mr. Rangaswamy Krishnamurthy, S/o. Rangaswamy, Director-Share Holder, M/s. V.R.G. Constructions (P) Ltd. No.5, A.V.M. Colony, 5th Cross Street, Virugambakkam, Chennai - 600 092.
4. Thiyagarajan Thirugnanaselvi, Director-Share Holder, M/s. V.R.G. Constructions (P) Ltd. No.5, A.V.M. Colony, 5th Cross Street, Virugambakkam, Chennai - 600 092.
5. G. Geetha (Deceased) Shareholder, M/s. V.R.G. Constructions (P) Ltd. No.134, A.V.M. Colony, 5th Cross Street, Virugambakkam, Chennai - 600 092.
6. Subathra Sundar No. 5, A.V.M. Colony, 5th Cross Street, Virugambakkam, Chennai - 600 092.
7. Krithika Sundar (minor) No.5, A.V.M. Colony, 5th Cross Street, Virugambakkam, Chennai - 600 092.
8. Swathika, No. 5, A.V.M. Colony, 5th Cross Street, Virugambakkam, Chennai - 600 092.
Comp App (AT) (CH) No.16/2025 Page 2 of 5 9. Sathya, No.5, A.V.M. Colony, 5th Cross Street, Virugambakkam, Chennai - 600 092. ...Respondents
Present : For Appellants : Mr. K. Gowtham Kumar, Mr. A.N. Vijith & Ms. Krithikaa Suresh, Advocates ORDER
(Hybrid Mode) 13.02.2025:
The Appellant herein is an opposite party to the proceedings in the
Company Petition No.12/2021, preferred by the Respondents/Petitioners, before
the NCLT, Chennai Bench, being the proceedings, which have been drawn under
Section 59 of the Companies Act, 2013. It is that during the pendency of the
proceedings of the Company Petition, the Respondents/Petitioners had preferred
an application praying for amending the relief clause by insertion of a relief,
which has been sought for and extracted in the impugned order.
The amendment which was sought for by the Respondents/Petitioners was
opposed by the Appellant herein by filing an objection on various grounds
including that the nature of relief, which has been sought for could not be
permissible by way of an amendment because the same would otherwise be
barred by limitation and the amendment, which was sought for by the
Respondents/Petitioners herein was after realizing the lacunas, subsequent to the
filing of the Counter Affidavit by the Appellant in the principal proceedings.
Be that as it may, the law governing the field of inserting amendments in
the petitions lays down certain specified restrictions where, the amendment will
Comp App (AT) (CH) No.16/2025 Page 3 of 5 not be permitted to be carried out and wherever the amendments are permitted
the relevant rules are very limited in their application. Further, not all
amendments, which are permitted to be carried out including the nature of
amendment which is the subject matter of instant Company Appeal will constitute
a sufficient cause to invoke the Appellate provision under Section 421 of the
Companies Act, 2013. There cannot be any iota of doubt that Section 421(1) of
the Companies Act, 2013, as the appellate provision has been quite broad-based
by using the word, "any aggrieved person" and "by any order". The use of the
word "Order", by the legislature under Section 421, as per our opinion will only
be that order, which when passed during the pendency of the proceedings, decides
a material right of the parties and only such order would be amenable for
challenging under Section 421 of the Companies Act, 2013. But in the instant
case by virtue of the impugned order, Learned NCLT has merely permitted the
amendment to be carried out and the lis is yet to be decided. All objections, which
are to be taken by the Appellant, have been left open to be agitated, owing to the
fact that the Learned Tribunal has already observed that the Appellant may file
an additional reply to the amended prayer within the time period as specified
therein in the impugned order.
Allowing of the said amendment does not deprive the Appellant of his
rights, to put a contest to the relief sought for by way of an amendment, on merits.
Since we are of the view that the nature of the order which is subjected to
challenge under Section 421 of the Companies Act, 2013, in the instant Appeal,
Comp App (AT) (CH) No.16/2025 Page 4 of 5 is more or less interlocutory in nature having been passed during the pendency of
the principal proceedings to allow an application for amending the relief clause
in the petition, it will not fall to be within the ambit of 'order' under Section
421(1) of the Companies Act, 2013. Particularly, owing to the fact that all
contentions are still left open for the Appellant to be raised before the Learned
NCLT. Accordingly, we decline to exercise our Appellate Jurisdiction in
entertaining the instant appeal against the Impugned Order. The Appeal would
stand dismissed without prejudice to the rights of the Appellant being left open
to raise all contentions relating to the question of fact and law before the Learned
NCLT, as against the relief sought by Respondents/Petitioners which has been
incorporated by way of the amendment.
[Justice Sharad Kumar Sharma] Member (Judicial)
[Jatindranath Swain] Member (Technical) VG/TM/MS
Comp App (AT) (CH) No.16/2025 Page 5 of 5
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