Supreme Court Upholds Company Law Board's Interim Order, Limits High Court's Intervention

The Supreme Court set aside the High Court's intervention in the ad-interim order issued by the Company Law Board, emphasizing that the High Court should not interfere when the interim relief matter is pending before the Board. The Supreme Court refrained from expressing opinions on the case's merits as it was ongoing before the Board. The Company was permitted to cover day-to-day expenses without creating third-party rights on its assets. Appeals were disposed of, and the Company Law Board was tasked with confirming, varying, or vacating the interim order after hearing all parties involved.

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Issues:
High Court interference with Company Law Board's ad-interim order

Analysis:
The Supreme Court granted leave and heard the counsels. The Court opined that the High Court should not have intervened in the ad-interim order issued by the Company Law Board, especially when the matter of interim relief was yet to be fully heard by the Board. Consequently, the Supreme Court set aside the impugned order of the High Court. It was clarified that since the case was still pending before the Company Law Board, the Supreme Court refrained from expressing any opinion on the merits of the case. The Court was informed that the matter was scheduled for a hearing before the Company Law Board on a specific date and requested the Board to expedite the proceedings. The Company was allowed to incur necessary expenses for its day-to-day operations without creating any third-party rights on its assets. As a result, the appeals were disposed of, leading to the disposal of pending applications as well. The Company Law Board was given the authority to confirm, vary, or vacate the interim order after hearing all concerned parties.

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