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The HC set aside the District Judge's interim injunction restraining the Appellant Company from acting on the agenda of Board and General Meetings concerning the Respondent's removal as a Director. The court held that the injunction was an inappropriate exercise of discretion under Section 9 of the Arbitration and Conciliation Act, 1996, as it pre-emptively interfered with statutory rights under the Companies Act, 2013. The notices for the meetings, though challenged for insufficient notice and particulars, fell within the proviso to Section 173(3) permitting shorter notice for urgent business. The injunction improperly stalled lawful corporate governance and granted relief akin to final adjudication without proper consideration of prima facie case, balance of convenience, or irreparable harm. The HC emphasized that challenges to such meetings should be addressed post facto, not by restraining their convening. The appeal was allowed and the impugned order was quashed.
The HC set aside the District Judge's interim injunction restraining the Appellant Company from acting on the agenda of Board and General Meetings concerning the Respondent's removal as a Director. The court held that the injunction was an inappropriate exercise of discretion under Section 9 of the Arbitration and Conciliation Act, 1996, as it pre-emptively interfered with statutory rights under the Companies Act, 2013. The notices for the meetings, though challenged for insufficient notice and particulars, fell within the proviso to Section 173(3) permitting shorter notice for urgent business. The injunction improperly stalled lawful corporate governance and granted relief akin to final adjudication without proper consideration of prima facie case, balance of convenience, or irreparable harm. The HC emphasized that challenges to such meetings should be addressed post facto, not by restraining their convening. The appeal was allowed and the impugned order was quashed.
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