It was held by the National Company Law Appellate Tribunal that under Section 241 read with Section 242 of the Companies Act 2013, the Tribunal is empowered to pass interim order in a petition for regulating the conduct the of the company’s affair upon such terms and conditions as appear to be just and equitable.
The said ratio was delivered by the National Company Law Appellate Tribunal in the matter of Atlas Cycles (Haryana) Ltd. and Ors. Vs. Vikram Kapur and Ors., Company Appeal (AT) No. 260/2018 decided on 28.08.2018.
In the present appeal, the only limited issue before this Ld. Tribunal was that whether the impugned order dated 02.08.2018, by which the company was stopped from selling its products in the states which are ‘Sonepat Unit’, is justified.
HeldNational Company Law Appellate Tribunal
The Ld. Appellate Authority held and observed that the impugned order dated 02.08.2018 is in the interest of the company and can not be interfered with. The Tribunal further placed reliance upon Section 241 read with Section 242 of the Companies Act 2013, to discuss the power of the tribunal to pass the interim orders.
It was observed that the tribunal is empowered to pass any order, which it deems just and equitable, in the interest of the company and for regulating its conduct at any stage of the petition.