NCLAT dismisses Gireesh Sanghi's plea to initiate a contempt process against Ravi Sanghi, others
New Delhi, September 2 () The NCLAT has rejected the request of the industrialist Gireesh Sanghi against the order of the NCLT-Hyderabad bank, which declined to initiate contempt proceedings against Ravi Sanghi and others.
In approving an order on April 22, 2019, the National Company Law Apelate Court (NCLT) dismissed a petition for contempt filed by Gireesh Kumar Sanghi alleging violation of the order approved by the Company's Law Board (CLB) on September 23 October 2008
The NCLT has said that there was no intentional disobedience to the CLB order and that there was not enough basis to conclude that respondents had committed contempt for that order.
This was challenged by Gireesh Sanghi before the NCLAT.
The Sanghi brothers, promoters of the Sanghi industry group based in Hyderabad, have a long-standing dispute over the assets.
The Chennai Bank of the CLB had ordered the parties in the South-based Sanghi Group of Companies to maintain the status quo and prohibited any transfer of shares during the inter-registration period to pave a friendly settlement for sibling disputes.
A three-member bank headed by the President of Justice, SJ Mukhopadhaya, also confirmed the order of the NCLT, saying that the transfer of shares was carried out as a step towards a possible agreement between the parties, which is also the spirit behind the order of October 23, 2008..
NCLT also noted that the order was approved to facilitate the parties to reach an agreement. In view of the fact that the order of October 23, 2008 can be seen from two different angles, NCLT concluded that if the order is able to interpret in two ways, then it cannot be claimed that there is a patent disobedience of the order of the former CLB.
Therefore, by merit also in the absence of any intentional disobedience of the order of October 23, 2008, the Court concluded that none of the Defendants commit contempt of court, he said.
The NCLAT noted that appeals filed were also prohibited under the limitation law and were not maintainable under section 421 of the Comanies Law.
Apart from this, the petition to initiate the contempt process was also prohibited by the limitation as prescribed in Section 20 of the 'Court Disrespect Act, 1971, he said.
Section 421 establishes an appeal to the NCLAT about the order approved by the NCLT within 45 days. Apart from the fact that appeals under Section 421 of the Companies Act, 2013 are not sustainable, the petition is prohibited by limitation under Section 20 of the 'Court Disregard' Act, 1971, all appeals are dismissed, he said. the NCLAT. KRH BAL