High Court grants interim relief staying Company Law Board order in Company Petition

The High Court of Gujarat granted interim relief to the original appellants, staying the effect of the impugned order passed by the Company Law Board in Company Petition No. 65 of 2012. The Court found the order too wide in terms and noted concerns regarding authorization given to an individual to attend meetings and the requirement for detailed recording of decisions. The Court granted ad-interim relief until final disposal of the appeal, staying further proceedings of the Company Petition.

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Issues involved: Application for stay of impugned order passed by Company Law Board, Mumbai Bench in Company Petition No. 65 of 2012.

Summary:
The High Court of Gujarat, in an oral order by Mr. Ravi R.Tripathi, granted interim relief to the original appellants who sought to stay the effect of the impugned order dated 4th March, 2013 passed by the Company Law Board. The Court found the order passed by the Company Law Board to be too wide in terms, particularly noting the authorization given to Shri Hari Sankar Acharya to attend all Board Meetings and AGM/EOGM, and the requirement for detailed recording and communication of decisions. The applicants argued that certain observations by the Company Law Board indicated a mission to collect evidence against the R-I Company. Consequently, the Court granted ad-interim relief to operate until the final disposal of the appeal, and further proceedings of Company Petition No. 65 of 2012 were stayed. The Civil Application was disposed of accordingly with direct service permitted.

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