TaxTMI 
TaxTMI 
TaxTMI 
2021 (5) TMI 874
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....td.' has filed this Appeal against the order dated 16.09.2019 passed by National Company Law Tribunal, Amaravati Bench, in I.A. No. 20 of 2018 in TCP No. 123/241/AMR/TP/2019 (CP No. 174/241/HDB/2017) whereby the Adjudicating Authority allowed the application filed by Petitioners (Respondents herein) and directed that forensic audit be conducted of the Appellant company since 31.03.2004. 2. Brief facts of this case are that Petitioners (Respondents herein) have filed Petition against the 'Vijaya Sai Poultries Pvt. Ltd., Mr. Naveen Kishore, Naveen Kishore HUF and Mrs. V. Roja Kishore under Sections 59, 241 and 242 of the Companies Act, 2013 (in brief the Act) alleging oppression and mismanagement by Mr. Naveen Kishore. In the petition, the P....
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....e Respondents for the first time alleged the forgery and fabrication of documents which was never raised earlier. There is a vague allegation that Mr. Naveen Kishore started selling moveable and immovable properties of the company illegally, however, in support of the said allegation, they have not filed any piece of evidence. The Respondent No. 1 being a signatory to the Balance Sheet and accounts of the company cannot seek appointment of another auditor to conduct a forensic audit. In the application, it is not mentioned as to what were the sale proceeds which were not deposited in the account of the Company and were misappropriated or siphoned off by Mr. Naveen Kishore. Further, the Company Petition is filed with the mala fide intention....
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....For this proposition, he relied on the judgments rendered by the Hon'ble Supreme Court in the matters of Karanti Associates Pvt. Ltd. & Ors. Vs. Masood Ahmad Khan & Ors. (2010) 9 SCC 496 and Woolcombers of India Ltd. Vs. Woolcombers Workers Union & Ors. (1974) 3 SCC 318. It is also submitted that the faith of the people in Tribunals can be sustained only if the Tribunals act fairly and dispose of the matters before them by passing well-considered orders as held by Hon'ble Supreme Court in the case of M/s Bombay Oil Industries Pvt. Ltd. Vs. UOI & Ors. (1984) 1 SCC 141. 7. Ld. Sr. Counsel for the Appellant further submits that the affidavit filed in support of the application is not sufficiently stamped hence, cannot be relied upon. For this....
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.... The impugned order is cryptic and non-speaking, therefore, liable to be set aside. 10. Per Contra, Ld. Counsel for the Respondents supports the impugned order and submits that Mr. Naveen Kishore is a Managing Director of the Appellant Company and has taken advantage of his position by indulging in oppression and suppression and has illegally transferred the shares of Respondents No. 2 to 5 on the basis of fabricated share transfer deeds and the resignation letter dated 31.03.2014 of Respondent No. 2. Mr. Naveen Kishore has illegally alienated/sold out the immovable properties of the Appellant Company and siphoned/diverted the funds for purchasing about 50 immovable properties in his individual name and in the name of his family members. F....
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....l authority must record reasons in support of its conclusions. c. Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well. d. Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. e. Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations. f. Reasons have virtually become as indispensable a component of a decision making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. g. Reasons facilita....
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....udicial Candor (1987) 100 Harward Law Review 731-737). n. Since the requirement to record reasons emanates from the broad doctrine of fairness in decision making, the said requirement is now virtually a component of human rights and was considered part of Strasbourg Jurisprudence. See Ruiz Torija Vs. Spain (1994) 19 EHRR 553, at 562 para 29 and Anya vs. University of Oxford, 2001 EWCA Civ 405, wherein the Court referred to Article 6 of European Convention of Human Rights which requires, "adequate and intelligent reasons must be given for judicial decisions". o. In all common law jurisdictions judgments play a vital role in setting up precedents for the future. Therefore, for development of law, requirement of giving reasons for the deci....