Interim protection in company control dispute granted where rival control claims were sub judice and foreign award remained unenforced.
Interim protection was granted in a company control dispute where the applicant showed a prima facie case and the balance of convenience favoured maintaining the existing position. The Tribunal noted that the rival group's entitlement to control the holding structure was already under challenge before the UK court, and the foreign arbitral award relied on by the respondents had not yet been enforced by the Madras High Court. The respondents were restrained from acting upon or giving effect to the resolutions passed at the extraordinary general meeting until disposal of the company petition.
Issues: Whether interim relief should be granted restraining the respondents from acting upon or giving effect to the resolutions purportedly passed at the extraordinary general meeting held on 25.01.2022.
Analysis: The petition was filed under Sections 241 and 242 of the Companies Act, 2013 seeking interim protection in a dispute over control of the company. The materials showed that the entitlement of the contesting group to control the holding structure was already under challenge before the UK court, and the foreign arbitral award relied upon by the respondents was not yet enforced by the High Court of Madras. In that background, the Tribunal found that the petitioner had made out a prima facie case and that the balance of convenience favoured preservation of the existing position until the main petition was decided.
Conclusion: Interim relief was granted and the respondents were restrained from acting upon or giving effect to the resolutions passed at the extraordinary general meeting held on 25.01.2022 until disposal of the company petition.
Ratio Decidendi: Interim protection may be granted where the applicant establishes a prima facie case and balance of convenience, particularly where the rival claim to control is sub judice and the foreign award relied upon has not yet been enforced.
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