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The Supreme CourtOf India has mentioned that separate jurisdiction powers have been bestowed upon National Company Law Tribunal and the civil courts had no right to intervene in NCLT matters. In the case of Shashi Prakash Khemka vs. NEPC Micon, Justice L Nageshwar Rao and Justice Sanjay KishanKaul had played a pivotal role. The bench was speculating realted to the matter of transferring of shares that is whether it would be decided by the civil court or Company Law Board.
With respect to this case the High Court of Madras had catered to the notion that there would be no jurisdiction of the Company Law Board, as with regards to the title there have been severe disputes and that the matter would be settled by the Civil Court. It was submitted in front of the apex court by the appellants that certain developments that have taken place in the legal sphere had direct effects on the case. Since, the amendment of the Companies Act, 2013, the new provision under section 59 of the respective act caters to the notion of the ‘power of rectification of the Register.’
The court had mentioned that-
“430. Civil court not to have jurisdiction.- No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Tribunal or the Appellate Tribunal is empowered to determine by or under this Act or any other law for the time being in force and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act or any other law for the time being in force, by the Tribunal or the Appellate.”
Thus, the bench had decided the following-
“We are thus of the opinion that in view of the subsequent developments, the appropriate course of action would be to relegate the appellants to remedy before the NCLT under the Companies Act, 2013. In view of the lapse of time, we permit the appellants to file a fresh petition within a maximum period of two months from today.”
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