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        Companies Law

        2021 (2) TMI 441 - Tri - Companies Law

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        Tribunal directs R3 Group to seek Delhi High Court approval for Google & Just Dial ads. Compliance deadline: 2 months. The Tribunal directed the R3 Group to move an appropriate application in CS No. 1 of 2017 before the Delhi High Court to allow both R2 and R3 groups to ...
                        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.

                            Tribunal directs R3 Group to seek Delhi High Court approval for Google & Just Dial ads. Compliance deadline: 2 months.

                            The Tribunal directed the R3 Group to move an appropriate application in CS No. 1 of 2017 before the Delhi High Court to allow both R2 and R3 groups to use/advertise on Google and Just Dial, in compliance with Consent Term No. 12. The R3 Group was instructed to report compliance within two months. The Tribunal's jurisdiction was confined to issuing directions based on the consent terms and did not extend to adjudicating the merits of the case pending before the Delhi High Court. The Company Petition was disposed of with these directions, and any pending applications were closed.




                            Issues Involved:
                            1. Execution of Consent Term No. 12 of the Consent Terms dated 14.11.2014.
                            2. Compliance with the consent terms by the involved parties.
                            3. Jurisdiction and authority of the Tribunal in directing the execution of consent terms.

                            Detailed Analysis:

                            Issue 1: Execution of Consent Term No. 12 of the Consent Terms dated 14.11.2014
                            The Petitioners sought the execution of Consent Term No. 12, which required the R3 Group to move an application in OS No. 3329 of 2011 before the Delhi High Court, allowing both R2 and R3 groups to use/advertise on Google and Just Dial. The Tribunal noted that R3 had filed an application (IA No. 2645/2020) in CS No. 1 of 2017 before the Delhi High Court, but it was not pursued properly, and the Petitioners were not informed. The Tribunal directed the R3 Group (comprising R1, R3, and R4) to move an appropriate application in CS No. 1 of 2017 before the Delhi High Court to comply with Consent Term No. 12.

                            Issue 2: Compliance with the consent terms by the involved parties
                            The Tribunal observed that most consent terms were adhered to except for Consent Term No. 12. The Petitioners argued that R3 Group did not comply with the consent terms, and the Respondents were acting against the Petitioners' interests. The Tribunal noted that the R3 Group had not fully complied with the requirement to move an application in the Delhi High Court. The Tribunal directed the R3 Group to ensure compliance and report back within two months.

                            Issue 3: Jurisdiction and authority of the Tribunal in directing the execution of consent terms
                            The Tribunal acknowledged its subordinate jurisdiction to the Delhi High Court and clarified that its direction was limited to ensuring compliance with the consent terms recorded before the Company Law Board (now NCLT). The Tribunal emphasized that its direction should not be viewed as an opinion on the merits of the case pending before the Delhi High Court.

                            Conclusion:
                            The Tribunal directed the R3 Group to move an appropriate application in CS No. 1 of 2017 before the Delhi High Court to allow both R2 and R3 groups to use/advertise on Google and Just Dial, in compliance with Consent Term No. 12. The R3 Group was instructed to report compliance within two months. The Tribunal's jurisdiction was confined to issuing directions based on the consent terms and did not extend to adjudicating the merits of the case pending before the Delhi High Court. The Company Petition was disposed of with these directions, and any pending applications were closed.
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