Stay of interim order pending appeal: tribunal must hear connected company petitions expeditiously and aim for prompt disposal.

Appellate stay of an NCLT interim order was imposed pending appeal because the impugned interim directions risked indirectly implementing the MOU before an arbitrator finally adjudicated the family settlement; the appellate analysis emphasised the existence of an arbitration clause and that the company petitions were already listed for final hearing. The appellate court directed the tribunal to take up the connected company petitions on the fixed date or with only short adjournments and to endeavour to dispose of them as early as possible, preferably within one month, while the earlier stay continues.

---

---

Issues: Whether the impugned order dated 01.06.2022 passed by the NCLT should be stayed during the pendency of the appeal and directions be issued for early hearing and disposal of the connected company petitions by the NCLT.

Analysis: The appeal court examined the circumstances in which the NCLT had passed the impugned order while final hearing of the related company petitions had been fixed; noted the presence of an arbitration clause in the underlying MOU and that the arbitrator had not finally adjudicated the family settlement; considered that the NCLT's interim directions risked indirectly implementing the MOU prior to arbitration determination; and took into account that the NCLT had already scheduled the company petitions for final hearing. The court further considered the parties' positions and the convenience of directing the NCLT to proceed expeditiously with hearing and disposal of the petitions on the date fixed or by short adjournments.

Conclusion: The impugned order dated 01.06.2022 is stayed during the pendency of this appeal and the stay granted by order dated 15.05.2023 shall continue; the NCLT is directed to take up both company petitions on the date fixed (26.03.2025) and endeavour to decide them as early as possible, preferably within one month, giving only short adjournments if necessary.

---