AI Drafter 
TaxTMI 
TaxTMI 
2025 (4) TMI 639
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....g the provisions contained under Section 421 of the Companies Act, 2013, challenging an order dated 29.09.2022 which has been passed under Section 213(b) of the Companies Act, 2013, by Ld NCLT, Bengaluru, directing thereof, the Central Government to conduct an investigation as against the Company/Appellant No.1 including its directors (Appellant No.2), as per the procedure prescribed under the aforesaid provision, after considering all the material documents, to be supplied by the petitioner to the proceedings, Respondent No. 1 herein and to take further necessary steps as per law, with regards to the investigation into the affairs of the said Company including its Directors, as expeditiously as possible. 2. The argument of the Learned C....
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....pellant Company, that owing to the delayed funding and due to the pendency of litigations over the piece of land on which the project was supposed to be implemented, the project could not be implemented as per the promised time lines which cannot be termed as commission of fraud, that for the purposes of initiation of the proceedings under Section 213(b) of the Companies Act, 2013, that there has had to be satisfactory material placed on record, available before the Tribunal for passing of an order for conducting of an investigation under Section 213 of the Companies Act, 2013, and in the absence of such material being on record to be considered and in the absence of satisfaction recorded on such material by the Tribunal, no direction as su....
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....n without hearing the Appellants, which calls for an interference by this Appellate Tribunal. 5. In order to satisfy the aspect as to, whether at any point of time, the Appellant had engaged Ms. Jyoti Singh, there is nothing on record which could show, that she had filed any vakalat on behalf of the Appellant. But that in itself, will not suffice to establish conclusively the contention of the Appellants that they were not heard and not even served with notice and that the order was passed behind their back, especially in the light of the findings recorded in Para 4&5 of the Impugned Order that, the Appellants did have the knowledge and they were expected to effectively participate in the proceedings which they have not done. 6. The s....
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.... Tribunal should resort to the process of a substitutive mode of service so as to ensure service by way of publication and that once, the said mode is resorted to, there will be a deeming conclusion/inference, that the respondent has been served with the notices in the light of the provisions contained under Rule 20(2) of Order V of the Code of Civil Procedure, 1908. In view of the findings which have been recorded by the Learned Tribunal that, the notices were effectively served upon them i.e., appellants herein by way of a publication, and that thereafter only, the Tribunal has directed the "proceedings to be carried exparte" and in view of the fact that the said order of directing the proceedings to be carried exparte, against the Appell....
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....it cannot be said that, the direction, which has been given by the Impugned Order, for conducting an investigation under Section 213(b) of the Companies Act, 2013, happens to be an order, which is an exparte or suffers from vices of being an order, passed exparte without hearing the Appellant. 7. In the Memorandum of Appeal, which has been drawn by the Appellant and the finding which has been recorded in para-4 of the Impugned Order, about the efforts of exploration of terms of settlement, is not a fact which has been specifically denied by the Appellant except for the fact that, the Impugned Order happens to be exparte and suffers from the violation of principles of natural justice. 8. This Appellate Tribunal is of the view, adherenc....
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....es the subject matter of investigation to be conducted by the Government of India. Further, the Impugned Order has been assailed on the solitary ground of being in violation of principle of natural justice, which is not being made out owing to the findings which are recorded in the Impugned Order. Besides since the consequential effect of the Impugned Order, would only result in carrying out of an investigation into the conduct of the Appellant, Company including its directors in its business operations based on a complaint, filed by the Respondent, normally, the courts/tribunals should keep their hands off in such process of investigation which has been directed under law to be carried against a party or person, so as to arrive at a conclu....