Shakti Bhushan Vs Titan Industries Ltd (NCLAT Chennai)
NCLAT Chennai held that delay in filing Restoration Application in the Contempt Proceedings deserves to be condoned since the reasons given for delay appears to be reasonable. Accordingly, delay of 374 days condoned.
Facts- The appellants had initiated a proceeding under Section 108 of the Companies Act of 1956. The Appellant had prayed for a grant of a decree of permanent injunction, in favour of the Plaintiff/Appellants, as against the Respondent/Defendant, thereby restraining them from transferring 400 shares. The Appellants also sought a Decree in the nature of Mandatory Injunction as against the Respondent, seeking a direction to register the name of the appellant/petitioner in the records of the Respondent No.1 Company as the owner of 400 shares. Another relief, which was sought by the Plaintiff / Appellant was that, the defendants / Respondents be directed to pay a sum of Rs.8,45,000/- along with the interest at the rate of 24% payable on it, to the appellants, in terms of the pleadings raised in para-16 of the plaint.
Notably, since the said order was not complied with within the specified time frame, the Appellant herein filed a Contempt Petition by invoking the provisions contained u/s. 425 of the Companies Act of 2013 (to be read with the Provisions contained u/s. 10G of the Act of 1956). The said Contempt Petition was preferred by the Appellant by invoking the Provisions contained u/s. 11 to be r.w.s. 12 of the Contempt of Courts Act of 1971.
