MR.SURENDER KUMAR GUPTA AND OTHERS versus J M HOUSING LIMITED AND OTHERS

MR.SURENDER KUMAR GUPTA AND OTHERS versus J M HOUSING LIMITED AND OTHERS

The NCLAT erred in setting aside the NCLT's ex-parte ad-interim order solely on the ground that the respondents were not heard; ex-parte ad-interim relief is permissible where grave urgency, irretrievable injury, a prima facie case and balance of convenience are established, and accordingly the NCLAT order is set aside with directions allowing the appellants liberty to apply afresh and directing the NCLT to decide interim relief within a fixed period.

Parties
Appellants: Mr. Surender Kumar Gupta and Others; Respondents: J M Housing Limited and Others
Jurisdiction
India
Judgment Date
26 February 2021
Procedural Posture
Civil Appeal (civil Appeal No. 418 of 2021) / Final Judgment
Outcome
Civil Appeal disposed of; NCLAT order set aside and substituted with directions permitting fresh interim application and remanding to NCLT for reconsideration.
Legal Topics
Oppression and Mismanagement, Ex Parte Ad Interim Orders, Principles of Natural Justice, Interim Relief, NCLT and NCLAT Procedure
Company Law Civil Procedure Oppression and Mismanagement Ex Parte Ad Interim Orders Principles of Natural Justice Interim Relief NCLT and NCLAT Procedure

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Parties

Mr. Surender Kumar Gupta and Others

Appellants

J M Housing Limited and Others

Respondents

Procedural Posture

Civil Appeal (civil Appeal No. 418 of 2021) / Final Judgment

Legal Issues

  1. 1 Whether the NCLAT erred in setting aside the NCLT ex-parte ad-interim order on the ground of violation of principles of natural justice
  2. 2 Whether an ex-parte ad-interim order may be validly passed only if irretrievable injury, a prima facie case and the balance of convenience are established
  3. 3 Whether remand to NCLT precludes the appellants from seeking interim relief and whether they should be granted liberty to apply afresh

Ratio Decidendi

The NCLAT erred in setting aside the NCLT's ex-parte ad-interim order solely on the ground that the respondents were not heard; ex-parte ad-interim relief is permissible where grave urgency, irretrievable injury, a prima facie case and balance of convenience are established, and accordingly the NCLAT order is set aside with directions allowing the appellants liberty to apply afresh and directing the NCLT to decide interim relief within a fixed period.

Court Disposition

Civil Appeal disposed of; NCLAT order set aside and substituted with directions permitting fresh interim application and remanding to NCLT for reconsideration.

Orders

  • NCLAT order dated 18.12.2020 set aside and substituted by the directions in this judgment
  • The appellants are granted liberty to apply afresh to the NCLT for interim relief on the basis of the same application