Natural justice requires notice and hearing before ex parte interim restraint orders with serious civil consequences can stand.

Ex parte interim restraint orders with serious civil consequences must comply with natural justice, including a reasonable opportunity of hearing and, ordinarily, reasons. In proceedings under the Companies Act, the appellate tribunal found that the interim order had been passed without effective notice and hearing, creating a patent procedural infirmity. The order was therefore set aside, and the matter was remitted for de novo consideration after hearing all parties, leaving the substantive company petition open for fresh adjudication on merits.

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Issues: Whether the ex parte ad interim order passed by the Tribunal without effective opportunity of hearing and without due observance of natural justice was liable to be set aside and the matter remitted for fresh consideration.

Analysis: The impugned order was passed ex parte in proceedings under sections 241 and 242 of the Companies Act, 2013 and had immediate civil consequences on the company's business. The Tribunal emphasised that the Tribunal and Appellate Tribunal are bound by the principles of natural justice, that a reasonable opportunity of hearing is mandatory, and that an adverse order should ordinarily be supported by reasons. On the facts, the order was found to suffer from a patent procedural infirmity because it had been passed without proper opportunity to the affected parties before granting sweeping interim restraint relief.

Conclusion: The ex parte interim order was set aside for violation of natural justice, and the matter was remitted to the Tribunal for de novo consideration after hearing all parties.

Final Conclusion: The appeal succeeded on the procedural infirmity in the interim order, with the underlying company petition left open for fresh adjudication on merits.

Ratio Decidendi: An ex parte interim order having serious civil consequences, passed without a fair opportunity of hearing, cannot be sustained and must be set aside in favour of de novo adjudication on notice and hearing.

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