NISHANT
Election dispute in a company involving voting under rule 20 of the Companies Management and Administration Rules would not lie before the Civil Court but only before the NCLT
NISHANT MEHROTRA 21 Oct 2019

Election dispute in a company involving voting under rule 20 of the Companies Management and Administration Rules would not lie before the Civil Court but only before the NCLT

Madras High Court :: Companies Act, 2013 – Sections 241 and 242 read with sections 420 to 430 and with rule 20 of Companies (Management and Administration) Rules, 2014 – Interpretation of statutes – Scope and jurisdiction of National Company Law Tribunal in deciding election disputes – Election would become oppression when it goes against the interest of the company. It goes to the root as the challenge is to the very right to manage the affairs. Hence, an election dispute of a company involving voting through electronics means done under rule 20 of the Management and Administration Rules, 2014 would not lie before the Civil Court, but only before the Tribunal in view of section 241 and 242 on the one hand along with sections 424 to 430 of the Companies Act, 2013. Tribunal is empowered to act as regular or special court depending on nature of complaint. Section 430 is preemptory provision and must be read along with other provisions of sections 242 and 424 read with section 430. Case: VIJI JOSEPH Vs. P CHANDER AND OTHERS THE PRESIDENCY CLUB V. P CHANDER AND ANOTHER
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