LAWS(MAD)-2019-4-165

VIJI JOSEPH Vs. P.CHANDER

Decided On April 26, 2019
Viji Joseph Appellant
V/S
P.Chander Respondents

JUDGEMENT

(1.) Whether an election dispute of a company involving voting through electronic means done under Section 20 of the Companies (Management and Administration) Rules, 2014 to the Board of Directors would be amenable to the jurisdiction of the National Company Law Tribunal is the issue for consideration before this Court.

(2.) Respondents 1 and 2/plaintiffs, who were holding the post of Vice President and Honourable Secretary of the appellant in O.S.A.No.30 of 2019 for the term 2016-2018, but lost the election for the year 2018-2020 through the same procedure adopted by means of electronic voting, filed the suit inter alia alleging that there was a connivance between the elected office bearers/defendants and the scrutinizer. The following are the relevant averments made in the suit along with the relief sought for.

(3.) An application was filed by the appellant in O.S.A.No.29 of 2019, who was arrayed as defendant No.5 in the suit having been elected as a President invoking the existence of the bar under Section 430 of the Companies Act, 2013, which prohibits Civil Courts from entertaining any suit, which the Tribunal is empowered to determine under the Act. The learned single Judge has dismissed the application inter alia holding that the proceedings before the Tribunal are summary in nature and complex issues and an election dispute cannot be adjudicated before it as the process involves complex questions of fact. Seeking to assail the aforesaid order, both the appeals are before us.