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Issues: Whether failure by the Company Law Board to serve notice on caveators under Section 148A of the Code of Civil Procedure rendered the proceedings and orders passed therein a nullity, and whether interference under writ jurisdiction was warranted.
Analysis: The lodging of a caveat under Section 148A of the Code of Civil Procedure entitles the caveator to be informed of the hearing, but it does not automatically confer an unconditional right to be heard, especially when the caveator is not recognised as a party. A breach of the caveat notice requirement, by itself, does not nullify the proceedings or strip the tribunal of jurisdiction. Such a defect would justify interference only if specific prejudice or special damage is shown. On the facts, no order was passed against the caveators and no special prejudice was demonstrated. The availability of an alternate statutory remedy before the Company Law Board and under Section 10F of the Companies Act, 1956 also made writ intervention inappropriate.
Conclusion: Failure to serve notice on the caveators did not render the Company Law Board proceedings a nullity, and the writ petition was not maintainable for interference on that ground.