Interim protection against coercive rights issue accepted pending further orders in an oppression and mismanagement dispute.

The Tribunal considered an urgent request for interim protection in a company petition alleging oppressive conduct and unilateral corporate action affecting a director-shareholder. It noted that earlier ex parte directions had already required prior notice before any move to remove the applicant as director and compliance with the Companies Act, 2013. As the respondents had not appeared, the Tribunal declined to issue further ex parte relief at that stage, but granted limited protection by restraining the respondents from compelling acceptance of the rights issue until further orders.

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Issues: Whether interim protection should be granted to restrain the respondents from compelling the applicant to accept the rights issue offered to her pending further orders.

Analysis: The application sought urgent interim protection in a company petition alleging oppressive conduct and unilateral acts affecting the applicant's position as a director and shareholder. The Tribunal noted that earlier ex parte interim directions had already required prior notice before any proposal to remove the applicant as director and to comply with the Companies Act, 2013. In the absence of appearance by the respondents, the Tribunal declined to pass any further ex parte interim orders at that stage, but considered it appropriate to protect the applicant from being compelled to subscribe to the rights issue.

Conclusion: The applicant was granted limited interim protection, and the respondents were restrained from forcing acceptance of the rights issue until further orders.

Final Conclusion: The application was disposed of with interim relief in favour of the applicant, leaving the substantive company petition to be adjudicated separately.

Ratio Decidendi: Where a respondent has not appeared and the circumstances justify interim protection, the Tribunal may grant limited status quo-style relief to prevent coercive corporate action pending further orders.

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