Mr.Karan Khatri v. Paramount Airways Private
Case brief
What is this about?
This Company Appeal challenging a Company Law Board order was found to lack bona fide as petitioners had received millions via compromise. Court directed deposit of disputed sums with interest within 12 weeks to prove bona fide before taking up for further hearing; failure led to dismissal.
What did the court decide?
Directed to deposit sum of Rs.1,99,94,597/- with 12% interest and Rs.6.45 crores with 6% interest to prove bona fide within 12 weeks for further hearing else appeal to be dismissed.
What the court decided
Comp.A.No.21 of 2015
Comp.A.No.21 of 2015
C.SARAVANAN, J.
This Company Appeal has been filed to set aside the order passed by the Company Law Board on 04.04.2012 in C.P.No.36 of 2008 declaring the prayer of the petitioners against the purported operation and mismanagement of the first respondent company. The petitioners were the former Directors of the first respondent company who held 100% share in the said company.
- It is the specific case of the petitioners herein that the first respondent who had borrowed the amounts from Salem Town Urban Co-operative Bank Limited and that the assets of the first respondent company was offered as a security for the loans to the said bank and since the bank had initiated proceedings under the SARFAESI Act. The petitioners herein as the directors of the first respondent company had approached the second respondent for financial arrangements to stave off the auction by the said Bank.
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Comp.A.No.21 of 2015
- It is under these circumstances, four different agreements were signed. The three agreements were signed on 29.10.2004 followed by
Issues for consideration
3 issues framed by the court
Whether the Company Appeal filed by petitioners to set aside the Company Law Board order is maintainable.
Whether the appeal lacks bona fide given the petitioners received substantial sums and entered a compromise.
Whether to require deposit of the disputed amounts with interest as a condition for further hearing.
Parties & counsel
- petitioner
Petitioners
- respondent
First Respondent Company
- respondent
Second Respondent
- respondent
Respondents
Coram
Case details
As recorded by the court registry
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