ELECTROSTEEL CASTINGS LTD. Vs. BINAY PRAKASH

JUDGEMENT

(1.) HEARD the parties at length on maintainability of this appeal as well as on merits.

(2.) THIS appeal has been filed under Section 10F of the Companies Act. 1956 against the order dated 31.10.2006 passed by the Company Law Board. Principal Bench, New Delhi (C.L.B. for short) on the petition filed by the appellant, under Section 8 of the Arbitration and Conciliation Act, 1996 (Arbitration Act for short) being C.A. No. 257 of 2006, in the petition filed by the respondent Nos. 1 to 3 (Binay Prakash Group for short) under Sections 397/398 of the Companies Act, 1956 being C.P No. 66 of 2006; holding that the disputes cannot be referred to Arbitration. (The parties position before the CLB is mentioned in the cause title of this appeal, for the sake of convenience)

(3.) WHEN this appeal was taken upon 18.1.2007. Mr. S.N. Mookherjee, appearing for the respondent -Binay Prakash Group raised a preliminary objection that the Division Bench is competent to hear this appeal. Such objection was referred to the Division Bench. The Division Bench held that this appeal can be heard by single Judge. Thus, this appeal is before me. Though, the objection of maintainability was not raised when the matter was referred to the Division Bench and even before the Division Bench, when this case was remitted to the single Judge for hearing and deciding the matter on its merits, but when such objection was raised at the time of admission of this appeal, it was admitted for hearing on all questions including its maintainability.