NCLAT allows plea by Zee for more time to reply to Invesco application in NCLT

The National Company Appellate Law Tribunal (NCLAT) has allowed the plea moved by Zee Entertainment Enterprises Limited challenging the October 5 order of the National Company Law Tribunal (NCLT), Mumbai whereby Zee was given only two days to reply to applications in NCLT seeking that an Extraordinary General Meeting (EGM) be convened on a requisition by Invesco Developing Markets Fund..The order allowing the appeal was pronounced this evening by the NCLAT Bench of Justice Jarat Kumar Jain, (Judicial Member)) and Dr. Alok Srivastava, (Technical Member)..On October 5, the NCLT had given Zee two days to file its counter-affidavit to the applications before it, moved by Invesco and OFI Global China Fund. .The Bench had declined to give more time to file this response, opining that it was a simple matter that did not need weeks and weeks for a reply to be filed. This October 5 order was challenged before NCLAT by Zee..Before the NCLAT, Zee had reiterated its contention that an ad interim hearing in the matter was abruptly and erroneously converted into a final hearing before the NCLT. As such, Zee had contended that the two-day time given last Tuesday to file its reply was not sufficient. .The NCLAT on Thursday agreed with Zee, holding that, "the Learned NCLT has committed an error in not granting reasonable and sufficient time for filing a reply, which is a complete violation of Rule 37 of NCLT Rules and Principles of Natural Justice.".The NCLAT added that since the NCLT was not bound by any timeline to pass an order in the matter. ."It is pertinent to mention that Section 98 of the Companies Act, does not prescribe any time limit or limitation on the Learned NCLT to pass order within that time limit. Engrafting the provisions of Section 100(4) in Section 98 would be wholly misconceived and untenable. Undisputedly, the reliefs sought in the Company Petition are specifically under Section 98 of the Companies Act. Given that Section 98 does not prescribe any time limit, the Learned NCLT ought to have granted reasonable time to the Appellant to file a reply", the NCLAT said. .As such, the appellant body has allowed Zee's appeal, stating:"Therefore, in the circumstances, as stated above, we are of the opinion that reasonable and sufficient opportunity should be given to the Appellants for filing a reply. After hearing both the parties, the Learned NCLT should proceed further. The appeal is disposed of accordingly, no order as to costs.".Orders in the appeal were reserved by the NCLAT on Thursday afternoon and pronounced later in the evening. .Senior Advocates NH Seervai and Sudipto Sarkar and Advocate Arun Kathpalia appeared for the appellants (Zee, independent directors on Zee's Board and its Managing Director, Punit Goenka). .Senior Advocates Mukul Rohatgi (for Invesco) and Janak Dwarkadas appeared for the respondents..The applications before the NCLT, Mumbai are slated to be taken up on Friday afternoon at 2.30 pm. .[Read Order]

NCLAT allows plea by Zee for more time to reply to Invesco application in NCLT

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