Contempt jurisdiction under the Companies Act: refusal to initiate proceedings upheld for lack of wilful violation.

An appeal under Section 421 of the Companies Act, 2013 was considered against an order refusing to initiate contempt proceedings under Section 425. The statutory scheme gives the Tribunal and Appellate Tribunal contempt powers similar to the High Court, with the Contempt of Courts Act, 1971 applying subject to modifications. The refusal was based on the finding that wilful and intentional breach of the status quo direction was not established, and the Appellate Tribunal found no reason to interfere. The appeal was not entertained and was dismissed.

---

---

Issues: Whether an appeal under Section 421 of the Companies Act, 2013 was maintainable against an order refusing to initiate contempt proceedings under Section 425 of the Companies Act, 2013.

Analysis: The statutory scheme confers on the Tribunal and the Appellate Tribunal the same contempt powers as the High Court, with the procedure under the Contempt of Courts Act, 1971 applying subject to modifications. The order impugned had declined to initiate contempt proceedings on the ground that wilful and intentional violation of the status quo direction was not established. In the circumstances, the Appellate Tribunal found no reason to interfere.

Conclusion: The appeal was not entertained and stood dismissed.

---