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Issues: (i) Whether the Company Law Board is a civil court for the purposes of the Special Court (Trial of Offences Relating to Transactions in Securities) Amendment Act, 1994. (ii) Whether the Special Court Amendment Act, 1994 withdraws the Company Law Board's jurisdiction in matters arising out of securities transactions involving a notified person.
Issue (i): Whether the Company Law Board is a civil court for the purposes of the Special Court (Trial of Offences Relating to Transactions in Securities) Amendment Act, 1994.
Analysis: The statutory definition of "court" under the Companies Act linked the term to the courts exercising jurisdiction under Section 10, while Section 10E constituted a separate provision dealing with the Company Law Board. The Board noted that it was empowered to regulate its own procedure and was not bound by the Civil Procedure Code as a civil court ordinarily would be. It also observed that the powers conferred by Section 10E(4)(c) were limited and did not make the Board a civil court in all matters. On that basis, the Board held that the Company Law Board was not a civil court under the Companies Act.
Conclusion: The Company Law Board is not a civil court.
Issue (ii): Whether the Special Court Amendment Act, 1994 withdraws the Company Law Board's jurisdiction in matters arising out of securities transactions involving a notified person.
Analysis: The amendment vested the Special Court with jurisdiction that had been exercisable by civil courts in relation to specified security transactions involving notified persons. The Board construed the amendment as aimed at transferring pending matters from civil courts for expeditious disposal, not at disturbing proceedings before the Company Law Board, which was not a civil court. Since the proceedings before the Board did not fall within the class of matters contemplated by Section 9A(1), the amendment did not affect its jurisdiction.
Conclusion: The Special Court Amendment Act, 1994 does not apply to proceedings before the Company Law Board, and the Board's jurisdiction continues.
Final Conclusion: The jurisdictional objection failed, and the matter was to continue before the Company Law Board for further hearing.
Ratio Decidendi: A statutory transfer of jurisdiction expressed to apply to civil courts cannot be extended to the Company Law Board where the governing statute treats it as a separate body with limited civil-court powers and its own procedure.
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