2017 (4) TMI 1595 - Tri - Companies Law

NCLT Chennai: Status Quo on Related Party Transactions Order

The National Company Law Tribunal, Chennai Bench, ordered a status quo on related party transactions until further notice, requiring bench approval for ... Seeking restraint on petitioner and R4 from making any related party transactions, till the matter is taken up for final hearing - HELD THAT:- Keeping in view the submissions of the counsel, we order status quo as on this date. In case there may be any need for related party transactions, the same shall not be carried out without the leave of this Bench. PCS representing the respondents submitted that a direction be given to the Petitioner/Management of RI to supply the required information to the respondents. His prayer is allowed. Petitioner/Management of RI is directed to provide the relevant information as may be desired by the respondents. Put up on 14.06.2017 at 10.30 A.M. Issues: Related party transactions, supply of information to respondentsThe judgment by the National Company Law Tribunal, Chennai Bench, involved a case where the counsel for certain respondents requested a restraint on related party transactions by the petitioner and another party until the final hearing. The tribunal ordered a status quo on related party transactions until further notice, emphasizing that any such transactions would require the bench's approval. Additionally, the respondents requested relevant information from the petitioner/management, which was granted by the tribunal. The petitioner/management was directed to provide the necessary information to the respondents. The case was scheduled to be heard further on a specified date.The first issue addressed in the judgment pertained to related party transactions. Counsel for specific respondents requested a restriction on such transactions by the petitioner and another party until the final hearing. In response, the tribunal ordered a status quo as of the current date, prohibiting any related party transactions without the bench's approval. This decision aimed to maintain the status quo and prevent any potentially contentious transactions during the legal proceedings.The second issue involved the supply of information to respondents. The respondents, through their representative, requested the petitioner/management to provide them with necessary information. The tribunal granted this request, directing the petitioner/management to supply the required information to the respondents. This decision ensured transparency and access to relevant information for all parties involved in the legal proceedings, promoting fairness and clarity in the case. The tribunal set a future date for further proceedings, indicating the ongoing nature of the legal process and the need for continued compliance with directives.