ORBIT ELECTRICALS PRIVATE LIMITED versus DEEPAK KISHAN CHHABRIA & ORS.

ORBIT ELECTRICALS PRIVATE LIMITED versus DEEPAK KISHAN CHHABRIA & ORS.

The Supreme Court found, on the basis of CCTV footage and transcript, that the NCLAT Bench was duly apprised on 13.10.2023 of the Supreme Court's direction that judgment be pronounced only after the scrutinizer declared the AGM result, yet the Bench pronounced judgment in deliberate disregard of that direction; accordingly the NCLAT judgment of 13.10.2023 was set aside under Article 142, the appeal ordered to be reheard before a Bench presided over by the Chairperson of NCLAT, the Member (Technical)'s unconditional apology was accepted, the Member (Judicial) was censured (and tendered resignation), and monetary directions were imposed on Deepak Kishan Chhabria and the Scrutinizer for...

Parties
Petitioner/appellant: Orbit Electricals Private Limited; Respondent: Deepak Kishan Chhabria & Ors.
Jurisdiction
India
Judgment Date
30 October 2023
Procedural Posture
Contempt Petition (civil) in Civil Appeal No. 6108 of 2023 / Final Order Disposing Contempt Proceedings (order Dated 30 October 2023)
Outcome
Contempt proceedings disposed of; NCLAT judgment dated 13.10.2023 set aside; appeal to be reheard afresh before a Bench presided over by the Chairperson of NCLAT; Member (Technical)'s apology accepted; Member (Judicial) censured and resignation tendered; monetary directions against respondent and scrutinizer;...
Legal Topics
Compliance With Supreme Court Orders, NCLAT Procedure and Practice, Declaration of AGM Results, Sanctions and Fines, Resignation and Disciplinary Action
Contempt of Court Company Law Administrative Law Judicial Conduct Compliance With Supreme Court Orders NCLAT Procedure and Practice Declaration of AGM Results Sanctions and Fines +1 more

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Parties

Orbit Electricals Private Limited

Petitioner/appellant

Deepak Kishan Chhabria & Ors.

Respondent

Procedural Posture

Contempt Petition (civil) in Civil Appeal No. 6108 of 2023 / Final Order Disposing Contempt Proceedings (order Dated 30 October 2023)

Legal Issues

  1. 1 Whether the NCLAT Bench willfully defied the Supreme Court order dated 13.10.2023 by pronouncing judgment before being apprised of the declared AGM result
  2. 2 Whether the Members of the NCLAT who pronounced judgment are liable to contempt proceedings
  3. 3 Whether the Scrutiniser and a company executive colluded to delay declaration of the AGM result in breach of Supreme Court directions

Ratio Decidendi

The Supreme Court found, on the basis of CCTV footage and transcript, that the NCLAT Bench was duly apprised on 13.10.2023 of the Supreme Court's direction that judgment be pronounced only after the scrutinizer declared the AGM result, yet the Bench pronounced judgment in deliberate disregard of that direction; accordingly the NCLAT judgment of 13.10.2023 was set aside under Article 142, the appeal ordered to be reheard before a Bench presided over by the Chairperson of NCLAT, the Member (Technical)'s unconditional apology was accepted, the Member (Judicial) was censured (and tendered resignation), and monetary directions were imposed on Deepak Kishan Chhabria and the Scrutinizer for...

Court Disposition

Contempt proceedings disposed of; NCLAT judgment dated 13.10.2023 set aside; appeal to be reheard afresh before a Bench presided over by the Chairperson of NCLAT; Member (Technical)'s apology accepted; Member (Judicial) censured and resignation tendered; monetary directions against respondent and scrutinizer;...

Orders

  • Judgment of the NCLAT dated 13.10.2023 is set aside and the appeal is to be heard afresh by a Bench presided over by the Chairperson of NCLAT.
  • Member (Technical) Dr. Alok Srivastavas unconditional apology accepted.