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2023 DIGILAW 795 (SC)

Snehal N. Muzoomdar v. Union Of India

2023-06-02

DIPANKAR DATTA, PANKAJ MITHAL

body2023
ORDER : 1. The petitioner is aggrieved by the order dated 04.05.2023 passed by the High Court of Delhi. While entertaining the petitioner’s writ petition [W.P.(C) No. 5842 of 2023] and listing it for further consideration on 09.08.2023, the High Court declined the prayer of the petitioner for interim relief. 2. In his writ petition, the petitioner mounted a challenge to the constitutional validity of Section 132(4) of the Companies Act, 2013 and Rules 10 and 11 of the National Financial Reporting Authority Rules. 3. It appears from the order under challenge that a show-cause notice having been issued to the petitioner, he responded to the same. However, thereafter, he invoked the writ jurisdiction of the Court and claimed parity by citing an order dated 21.05.2020 passed by a co-ordinate Bench of the High Court on W.P.(C) No. 1522 of 2020 (Rukshad Daruvala Vs. Union of India & Anr.). By the said order dated 21.05.2020, the co-ordinate Bench had restrained the respondents from passing the final order on the show cause notice issued to the petitioner therein. 4. The High Court in the impugned order referred to the decision of this Court reported in (2006) 12 SCC 28 : Union of India & Anr. vs. Kunisetty Satyanarayana to hold that the petitioner ought to contest the proceedings initiated against him and liberty was granted to pass the final order. The High Court while declining the prayer for interim relief claimed by the petitioner also distinguished the order dated 21.05.2020 on W.P.(C) No. 1522 of 2020 by holding that it was passed bearing in mind the pandemic which was then prevailing. 5. In course of hearing, we have been informed by Mr. Dewan, learned senior counsel for the petitioner that there are at least 10 (ten) writ petitions on the same point pending in the High Court and that the lead matter, i.e., W.P.(C) No. 1522 of 2020, along with other petitions is due for listing next on 13.07.2023. He prays that an order be passed tagging W.P.(C) No. 5842 of 2023 with W.P.(C) No. 1522 of 2020 and, in the meanwhile, the show-cause notice and the proceedings following it be stayed. 6. He prays that an order be passed tagging W.P.(C) No. 5842 of 2023 with W.P.(C) No. 1522 of 2020 and, in the meanwhile, the show-cause notice and the proceedings following it be stayed. 6. Although the High Court rightly did not follow the order dated 21.05.2020, we find from other orders placed on the record that the High Court while being seized of similar issues has restrained the respondents from giving effect to the final orders, if passed, in pursuance of the impugned show-cause notices. Ms. Aishwarya Bhati, learned Additional Solicitor General appearing for the Union of India at this stage submits that applications are in the process of being filed seeking vacation of interim relief granted in such cases. 7. Since the other petitions are due to be listed for final hearing soon, we are of the opinion that W.P.(C) No. 5842 of 2023, out of which this special leave petition arises, should also be tagged with W.P.(C) No. 1522 of 2020 and batch matters, for being heard analogously. The parties may complete their pleadings in the meanwhile. It is ordered accordingly. 8. However, in view of the statement made by Ms. Aishwarya Bhati that the final order passed in the proceedings initiated against the petitioner in terms of the liberty granted by the impugned order would not be given effect till 31.07.2023, we see no reason to interfere at this stage. 9. The petitioner shall be free to seek interim relief before the High Court upon notice to the respondents if W.P.(C) No. 5842 of 2023 is not decided finally by 31.07.2023. Needless to observe, it shall be open to the Union of India to oppose such prayer for grant of interim relief if made by the petitioner before the High Court. 10. With these observations, this special leave petition stands disposed of together with pending applications, if any. 11. All contentions are kept open. 12. We request the High Court to make sincere endeavour to decide the writ petition(s) as expeditiously as possible.