Vijay Data vs M/S Data Ingenious Global Ltd & Ors
- CitationCOMPANY APPEAL (AT) NO.134/2026
Ratio decidendi
The rule this decision rests on
The appeal disposes of a challenge to an order calling the parties personally to explore settlement, and the reasoning rests on the following points, taken in the order the Tribunal addresses them. A direction under Section 442(2) of the Companies Act, 2013, which empowers the Tribunal to refer proceedings to mediation, is not invalid for want of the parties' prior consent where the impugned order does not itself refer the matter to mediation but merely requires the parties to appear in person to explore the possibility of settlement; such a direction is within the Tribunal's jurisdiction and does not warrant interference. The principles of the Mediation Act, 2023 and the consent requirement laid down in Rupa & Co. Ltd. v. Firhad Hakim (2025 INSC 245) become operative only if the Tribunal actually refers the matter to mediation, and do not bar a prior call for the parties to explore settlement. A cost imposed on a party in an earlier proceeding may be waived where the Tribunal is pursuing an amicable settlement and maintaining a cordial atmosphere, and the Tribunal may exercise that discretion in modifying the impugned order.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
COMPANY APPEAL (AT) NO.134/2026 In the matter of: Vijay Data ` Appellant Vs Data Ingenious Global Ltd & Ors. Respondent For Appellant: Mr. Narendra M Sharma, Ms Sahana S Narayana, Advocates. For Respondent: Mr Shiv Mangal Sharma, Mr. Abhishek Sharma, Advocates. ORDER
HYBRID MODE
23.04.2026: This appeal is filed by the appellant against an impugned order
dated 12.03.2026 passed by the Ld. NCLT, Jaipur in CA No.3/JPR/2026 in CP
No.53(ND)2009 whereby the Ld. NCLT had dismissed the appellant's application
seeking recall of the order dated 19.02.2026 passed by the Ld. NCLT, Jaipur. It
is submitted the appellant alongwith others have filed a company petition
aggrieved by the acts of oppression and mismanagement by the Respondents
herein before the Ld. Company Law Board seeking relief on account of alleged
wrongful acts by Respondents No.1 to 8.
2. It is submitted the arguments of the appellant was concluded, but on
19.02.2026 the Ld. NCLT passed the following order: -
"Ld. Counsel for the Petitioner has partly advanced the arguments. Ld. counsel appearing on behalf of the Respondents' state that the respondents are ready and willing to resolve the issue by Medication. Let Mr. Babu Lal Data and 2
Mr. Vijay Data remain present in person on the next date of hearing for exploring the possibility of resolution. To come up for further consideration on 26.02.2026."
3. The appellant filed an application for recall of order dated 19.02.2026
alleging earlier too the efforts were made to resolve the matter amicably in
mediation but the Respondents did not come forward and in one of such cases
between the parties viz. Company Appeal No.1/2015 titled as Saurabh Agrotech
Pvt Ltd & Ors Vs Vijay Solvex Limited and Ors, a cost of Rs.2 lakh was imposed
upon the Respondents because of their unwarranted delay tactics.
4. It is submitted even otherwise, the consent of the appellant was required
to send the matter to mediation per Rupa & Co Ltd and Anr Vs Firhad Hakim
and Others, 2025 INSC 245 wherein it was held by the Hon'ble Supreme Court
the mediation cannot be thrusted upon either of the parties and consent of the
parties is required. It is submitted despite noting the judgement stated above,
and also while noting earlier too the efforts were made to settle the disputes
amicably by different courts at different times, the disputes could not be resolved
and thus as this petition is pending since2009, and as the appellants have
concluded their arguments; sending the matter again to mediation would be a
futile exercise and hence be not initiated. It is further argued firstly the appellant
have not given any consent for mediation and secondly as per Afcons
Infrastructure Ltd V Cherian Varkey Construction Co Pvt Ltd (2010) 8 SCC 24
wherein the Hon'ble Supreme Court has held if a judge is doing settlement
negotiation and he fails then he should not deal with the adjudication of the
matter to avoid apprehension on bias, it is submitted there is only one Bench at 3
Jaipur and if presiding Judge enters into mediation himself then the case would
have to be transferred to another Bench.
5. In any case at this stage, what we gather from the impugned order is the
impugned order is passed per Section 442(2) of the Companies Act, 2013 which
gives the suo moto power to the Ld. Tribunal to refer the matter for mediation.
6. In its impugned order, the Ld. NCLT noted the parties are related to each
other; the petition is pending since 2009; there are multiple litigations before the
High Court as well as Hon'ble Supreme Court and further that the appellant No.1
had expired during the pendency of the proceedings, and in these circumstances
the presence of the parties was sought to explore the possibility of settlement
and in no manner prejudices the rights of the parties. The impugned order does
not disclose the Ld. NCLT has actually referred the matter to mediation. It is
simply to call the parties so as to explore the possibility of settlement, if any, due
to reasons aforesaid and it cannot be said to be beyond jurisdiction; thus it
requires no interference. However, in case the Ld.NCLT decides to refer the
matter to mediation, then principles enshrined in the Mediation Act; the law laid
down in Rupa and Company (Supra) and other judgements referred to by the
appellant in his recall application, may be looked into.
7. Considering the fact the Ld. NCLT is trying to settle the disputes amicably,
hence to maintain cordial atmosphere, we waive the cost of Rs.25000/- imposed
upon the appellant herein. To this extent the impugned order stands modified.
8. With these observations the appeal stands disposed of. 4
9. Pending applications being IA No.2631, 2786, 2787 of 2026 are also
disposed of.
(Justice Yogesh Khanna) Member (Judicial)
(Mr. Ajai Das Mehrotra) Member (Technical) Bm
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