NCLAT New Delhi Suspends Finolex Cable Order Post Supreme Court Directs NCLT Delhi Chairperson To Conduct Inquiry

The National Company Law Appellate Tribunal (‘NCLAT’) Principal Bench, New Delhi comprising Justice Rakesh Kumar (Judicial Member) and Dr. Alok Srivastava (Technical Member), suspended its order dated 13.10.2023 in the matter of Deepak Kishan Chhabria & Anr. vs. Orbit Electricals Pvt. Ltd. & Ors. due to the disclosure of the result of the Annual General Meeting of the Finolex Cable. NCLAT had faced an inquiry by the Supreme Court as per which it was brought to the notice of the Supreme Court order dated 13.10.2023 directing the NCLAT that Judgment in pending appeal shall be delivered by it being duly apprised of the fact that the result of the Annual General Meeting has been declared. The matter related to Finolex Cable's Annual General Meeting and Prakash and Deepak Chhabria's legal tussle over the management control of the company. The NCLAT via its order dated 13.10.2023 had allowed Deepak Chhabria to continue as the chairman of Finolex Cables and put on hold the changes that were to be brought into the Articles of Association of the Company. The Supreme Court in its order dated 13.10.2023 had directed the NCLT chairperson Justice Ashok Bhushan to conduct an inquiry into whether a bench of the Appellate Tribunal defied the Supreme Court’s order and Justice Bhushan was required to submit such report on 16.10.2023 by 5 pm. The NCLAT via its order on 21.09.2023 had directed the status quo on the conduct of the Annual General Meeting until the dispute between Prakash Chabria and Deepak Chabria over the management of the Company was settled. The Apex Court had observed that decisions relating to the appointment of an Executive Chairperson would be subject to the outcome of the litigation at the NCLAT. Case Title: Deepak Kishan Chhabria & Anr. vs. Orbit Electricals Pvt. Ltd. & Ors. Counsel for Appellants: Mr. Ramji Srinivasan, Sr. Advocate with Mr. Amit Jajoo, Ms. Vatsala Pant, Ms. Eshna Kumar, Advocates Counsel for Respondents: Mr. Shikhil Suri, Ms. Vidhi Kapoor, Ms. Wamika Chadha, Advocates for R-1 Mr. K. Datta, Sr. Advocate with Mr. Mahesh Agarwal, Mr. Ankur Saigal, Ms. Geetika Sharma, Advocates for R-2 Case No.: Company Appeal (AT) No. 64 of 2020 Click Here To Read/Download Order

NCLAT New Delhi Suspends Finolex Cable Order Post Supreme Court Directs NCLT Delhi Chairperson To Conduct Inquiry

Sachika Vij

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