TaxTMI 
TaxTMI 
2015 (4) TMI 111
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....learned counsel for the appellant, Mr.P.H.Arvind Pandian, learned Senior Counsel for the fourth respondent and Mr.R.Shankar Narayanan, learned counsel appearing for the fifth respondent. Notice to respondents 1 to 3 is dispensed with for the following reasons:- (i) The second respondent already remained ex parte even before the Company Law Board, after having sold his shares to the fourth respondent; and (ii) Respondents 1 and 3 have no conflict of interest with the appellant, and they are represented by the same counsel. 3. Without getting into any factual details, the short question of law that arises for considerat....
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....ments relied upon with the office of the Bench within such period as may be fixed by the Bench but not exceeding fifteen days of service of petition upon him. (2) In the reply filed under sub-regulation (1), the respondent shall specifically admit, deny or explain the facts stated by the petitioner in his petition and may also state such additional facts as may be found necessary for the just decision of the case. The reply so filed shall be signed and verified in the manner as provided in regulation 14. (3) The documents referred to in sub-regulation (1) shall also be filed along with the reply and the....
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....iled by one or more of the respondents. Regulation 23 does not enable a co-respondent to file a counter reply to a reply filed by the respondent. 7. In so far as the procedure prescribed by the Civil Procedure Code is concerned, every written statement is filed under Order VIII. After a written statement is filed in terms of Order VIII, there can be no subsequent pleadings as seen from Rule 9, except under limited circumstances. Order VIII, Rule 9 of the Code, reads as follows:- "9. Subsequent pleadings.--No pleading subsequent to the written statement of a defendant other than by way of defence to set-off or counter-claim shall be presented except by the leave o....
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....lly of a counter reply by the petitioner. In view of the express language of Regulation 23, it appears that no subsequent pleadings is permissible from any of the respondents before the Company Law Board, to the counter filed by one of the co-respondents. 10. Once it is clear that the appellant cannot invoke Regulation 23, the only possibility for the appellant is to try to fall back upon Regulation 44. But Regulation 44 which deals with the inherent power and which is similar to, though not exactly identical to Section 151 of the Code, can be invoked only in cases where a situation is not covered by express provisions. Once the question on hand is covered by the express provisions of the Regulation 23, the area becomes an occupied terri....
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....inst the appellant. Once it is clear that the appellant, as a respondent, cannot file a counter reply to the reply of one of the respondents, I do not think that the appellant can be made to suffer by the Court drawing any adverse inference against the appellant and holding him guilty. This safeguard is available to him even under common law. 13. Therefore, holding that the refusal of the Company Law Board to entertain a counter reply from the appellant who is only a co-respondent, to the reply filed by another respondent, is perfectly justified in terms of Regulation 23, this appeal is dismissed. However, I make it clear that the Company Law Board cannot hold the allegations made against the appellant by the co-respondent to have gone u....