Corporate Governance Dispute: NCLAT Clarifies Tribunal Order Enforcement Under Sections 241 and 242 of Companies Act

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Full Text of the Document

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....NCLAT held that tribunal orders under Section 241 & 242 of Companies Act are enforceable as decrees under Section 424(3), but do not constitute formal decrees under CPC. The Adjudicating Authority correctly rejected applications seeking decree formulation, recognizing that tribunal orders have inherent power to modulate relief to meet justice without adopting rigid procedural formalities. The tribunal's order remains executable as a decree, but cannot be technically drawn as a traditional civil court decree. The appeal was disposed of, affirming the tribunal's discretionary power to determine appropriate relief mechanisms while maintaining the substantive intent of the original adjudication.....