Interim preservation of company property: status quo granted pending arbitral and company proceedings to prevent third-party rights.

Section 242(4) interim powers under the Companies Act were discussed in the context of protecting company property pending arbitral and company proceedings. The Tribunal applied the settled criteria for interim relief, including prima facie case, balance of convenience, irreparable injury and undue hardship, and noted parallel relief requests before the arbitral forum. Concerned that third-party rights were being created in the immovable property covered by the sale deed, it considered preservation necessary to protect the company's interest. Status quo was directed in respect of the property until the arbitral forum or the jurisdictional objection application was decided, while the remaining interim reliefs were kept pending.

---

---

Issues: Whether ad-interim protective relief could be granted restraining dealing with the immovable property covered by the sale deed and maintaining status quo pending the arbitral and company proceedings.

Analysis: The Tribunal noted that its interim powers under Section 242(4) of the Companies Act, 2013 are to be exercised in relation to the affairs of the company and on just and equitable considerations. It also applied the settled requirements for interim relief, namely prima facie case, balance of convenience, irreparable injury, and undue hardship. The Tribunal found that parallel proceedings were pending before the arbitral forum and that the parties had already sought similar reliefs there, but it was also concerned that third-party rights were being created in relation to company property before the arbitral decision. In that backdrop, and to protect the company's interest, the Tribunal held that interim preservation of the property was justified.

Conclusion: Status quo was directed in respect of the immovable property covered by the sale deed until the arbitral forum or the jurisdictional objection application was decided, and the remaining interim reliefs were kept pending.

---