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        Case ID :
        Companies Law

        The HC vacated the interim restraint against the applicants,...

        Interim restraint vacated; SFIO report and minutes insufficient to establish ex facie culpability under Section 542(1), triable issues remain

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                          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.
                                The HC vacated the interim restraint against the applicants, finding that while the SFIO report and board minutes contain material suggesting awareness and attendance at meetings during the period of alleged irregularity, they do not establish ex facie culpability sufficient to dismiss claims under Section 542(1). The court declined to strike the applicants from the array or to dismiss or stay misfeasance proceedings, holding that triable issues remain as to knowledge and participation and that evidence may later be lacking; leave was granted to reapply if evidence ultimately absolves them. The application was disposed of, with the balance of convenience weighed against continuation of the interim order.
                                Note: It is a system-generated summary and is for quick reference only.
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