MAHENDRA KUMAR AGARAWALLA Vs. ANUP AGARWALLA

JUDGEMENT

(1.) This appeal filed under Section 10F of the Companies Act, 1956 is from the order dated 5th February, 2009 passed by the Company Law Board, New Delhi.

(2.) The case of the appellant is that the order under appeal was passed on a contempt application filed for alleged violation of order dated 8th May, 2007. In proceedings under Sections 397 and 398 of the Companies Act, 1956 filed by one Anup Agarwalla, the respondent No. 1 herein an ex parte order was passed on 8th May, 2007 restraining the appellant from making any representation in the name or on behalf of the company. Affidavits were directed to be filed. An application was also filed for vacating the order dated 8th May, 2007 and for dismissal or stay of C. P. 50 of 2007 before the Company Law Board, New Delhi (CLB). An order was passed refusing to vacate the order dated 8th May, 2007and time was extended for filing affidavits.

(3.) On 22nd September, 2008 the hearing of the maintainability issue was concluded and a complaint was filed by the respondent No. 2 in C. P. 50 of 2007, namely, Mahendra Kumar Agarwalla (MKA group) through his advocate-onrecord M/s. R. L. Gaggar with the Registrar of Companies on 25th November, 2008. The Company Law Board was considering an application filed under Regulations 44 and 47 of the Company Law Board Regulations, 1991 and Contempt of Courts Act, 1971. In refusing to treat the application of 2009, as a contempt application the same should have been dismissed and no order passed as any order passed is in aid of the final relief which dealt mainly with wilful, deliberate and contumacious disobedience of order dated 8th May, 2007 and punishment to be levied on basis thereof. No reasons have been assigned as per the requirement of Section 10E(4C) and 5 of the 1956 Act, as giving of reason flows from the principles of natural justice and a quasi-judicial body is required to give reasons unless dispensed with expressly or impliedly.