NCLAT allowed appeal challenging dismissal of contempt petition...

NCLAT allowed appeal challenging dismissal of contempt petition for want of prosecution. Appellants sought permanent injunction restraining respondent from transferring 400 shares and mandatory injunction relief. Tribunal originally dismissed contempt petition due to non-compliance with registry objections and lack of prosecution. NCLAT held that contempt proceedings under Section 425 of Companies Act 2013 follow Contempt of Courts Act 1971 provisions. Court emphasized contempt proceedings maintain tribunal's prestige rather than enforce personal rights, thus should be decided on merits even without applicant's presence. Despite 374-day delay, NCLAT condoned delay citing appellants' medical ailments as reasonable cause. Tribunal erred in dismissing petition for want of prosecution when defects remained unrectified and proceedings had not properly commenced. Order dated 30.08.2019 rejecting contempt petition recalled and appeal allowed.

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