Tribunal dismisses application to set aside termination notice & validates Operating Licence Agreements

The Tribunal dismissed the application seeking to set aside a notice of termination and validate Operating Licence Agreements/Franchise Agreements for numerous restaurants. The decision was based on pending appeals before the National Company Law Appellate Tribunal, which had already granted leave for filing an application for interim relief. The Tribunal found it unnecessary to entertain the application and directed that any such request should be made before the National Company Law Appellate Tribunal. The dismissal was without costs and clarified that it did not address the merits of the issues raised.

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Issues:
Application for setting aside notice of termination and validity of Operating Licence Agreements/Franchise Agreements.

Analysis:
The judgment pertains to an application filed by the petitioner seeking to set aside a notice of termination issued by the non-applicant/respondent after the disposal of a company petition. The petitioner requested the declaration of the validity and subsistence of Operating Licence Agreements/Franchise Agreements for 145 restaurants, along with a direction for executing agreements for 20 restaurants. The learned Senior Counsel opposed the prayers made by the petitioner.

Upon hearing the arguments of both parties, the Tribunal concluded that the application was not maintainable at that stage. This decision was based on the fact that both parties had filed appeals before the National Company Law Appellate Tribunal, which were pending consideration. The Tribunal noted that the issue regarding the notice of termination had already been brought before the National Company Law Appellate Tribunal in the pending appeal, and the administrator appointed by the Tribunal had granted leave for filing an application for interim relief.

Given the pending appeals and the involvement of the National Company Law Appellate Tribunal, the Tribunal deemed it unnecessary to entertain the application for interim relief. It was decided that any such application should be preferred before the National Company Law Appellate Tribunal for propriety. Consequently, the application before the Tribunal was dismissed without costs. Importantly, the Tribunal clarified that the dismissal did not imply a consideration of the issues on merit, and the order should not be interpreted as expressing any opinion on the underlying controversy.

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