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        Companies Law

        2020 (8) TMI 342 - HC - Companies Law

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        Perjury petition tied to company-law disputes not entertained where AGM minutes were already before the NCLT. A petition for prosecution for perjury under Section 340 CrPC was not entertained because the alleged falsehood concerned AGM minutes and other ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Perjury petition tied to company-law disputes not entertained where AGM minutes were already before the NCLT.

                          A petition for prosecution for perjury under Section 340 CrPC was not entertained because the alleged falsehood concerned AGM minutes and other company-law disputes already required to be adjudicated by the NCLT. The Supreme Court's consent order had directed that the company petition and the connected Section 340 application be decided by the CLB/NCLT, and had indicated that the High Court need not proceed further with the related criminal miscellaneous proceedings. Adjudication in the petition would have overlapped with matters sub judice before the NCLT and conflicted with the course laid down by the Supreme Court, so the petitioner was relegated to pursue the remedy before the NCLT in accordance with law.




                          Issues: Whether a petition seeking prosecution for perjury under Section 340 of the Code of Criminal Procedure, 1973 could be entertained when the underlying disputes, including the genuineness of the impugned meeting minutes, were already required to be adjudicated by the NCLT pursuant to the Supreme Court's consent order.

                          Analysis: The relief sought in the petition was intrinsically connected with the validity and genuineness of the AGM minutes and related company-law controversies pending before the NCLT. The Supreme Court had directed that the company petition and the connected Section 340 application be decided by the CLB/NCLT and had expressly directed that the High Court need not proceed further with the connected criminal miscellaneous proceedings. In that setting, any adjudication in the present petition would have overlapped with issues already sub judice before the NCLT and would have been inconsistent with the course charted by the Supreme Court. The Court therefore declined to examine the merits and held that the petitioner could approach the NCLT in accordance with law.

                          Conclusion: The petition was not entertained at this stage and the petitioner was relegated to pursue the remedy before the NCLT.


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