New
Delhi, Nov 9: The Supreme Court has ordered a Chennai
businessman-cum-former AIADMK Member of Parliament to be personally present
before it on November 28 in a 13-year-old case of breach of contract with
Kasturi and Sons Ltd or face the risk of arrest and attachment of his
properties.
A Bench of Chief Justice of India Dipak Misra and Justices AM Khanwilkar and DY Chandrachud on Monday issued notice to KC Palaniswami to be personally present before it during the hearing of a civil appeal filed by Cheran Properties Ltd against a NCLAT order of July 5, 2017 in favour of Kasturi and Sons Ltd (KSL), the owners of The Hindu Newspaper. Senior advocate Mukul Rohatgi, for KSL, submitted tha Mr Palaniswami and Cheran Properties were one and the same entity. Mr Rohatgi said Cheran was nothing but a nominee of Mr Palaniswami in the contract for sale of a company called Sporting Pastime India Ltd. Mr Rohatgi submitted that Mr Palaniswami was the real force behind the prolonged litigation spanning over a decade.
Senior advocates Kapil Sibal and Abhishek Manu Singhvi, appearing for the Cheran Properties Ltd, strongly objected to Mr Rohatgi’s submissions, saying their client was a completely independent entity and should not be made liable. After hearing the arguments, Chief Justice Misra recorded in the written order that the court was of the considered opinion that Mr. Palaniswami was the “real contesting party”. “Issue notice to respondent no. 3 (Palaniswami), with a stipulation that he shall remain personally present before this Court on November 28, 2017, failing which a non-bailable warrant of arrest shall be issued against him, apart from attaching his properties,” the Supreme Court ordered. The order was uploaded on November 8. The Court observed in the order that there was no need to issue notice to the other respondents in the case. The Case involves the transfer of Sporting Pastime India Limited, a 100% subsidiary of KSL, to Mr Palaniswami and his nominees in 2004. However, the allegation against Mr. Palaniswami was that he failed to make the payment in consideration for this transfer. Kasturi & Sons Ltd. Had taken Mr Palaniswami to arbitration. An arbitral award was passed against Mr. Palaniswami to return Sporting Pastime to KSL. This award was upheld up to the Supreme Court. KSL had moved the National Company Law Tribunal to rectify the shareholding of the company in light of the award. The tribunal too had ordered in favour of KSL. This order was appealed by Cheran Properties Ltd and dismissed by the National Company Law Appellate Tribunal (NCLAT). The present special leave petition by Cheran was against the NCLAT order. UNI
A Bench of Chief Justice of India Dipak Misra and Justices AM Khanwilkar and DY Chandrachud on Monday issued notice to KC Palaniswami to be personally present before it during the hearing of a civil appeal filed by Cheran Properties Ltd against a NCLAT order of July 5, 2017 in favour of Kasturi and Sons Ltd (KSL), the owners of The Hindu Newspaper. Senior advocate Mukul Rohatgi, for KSL, submitted tha Mr Palaniswami and Cheran Properties were one and the same entity. Mr Rohatgi said Cheran was nothing but a nominee of Mr Palaniswami in the contract for sale of a company called Sporting Pastime India Ltd. Mr Rohatgi submitted that Mr Palaniswami was the real force behind the prolonged litigation spanning over a decade.
Senior advocates Kapil Sibal and Abhishek Manu Singhvi, appearing for the Cheran Properties Ltd, strongly objected to Mr Rohatgi’s submissions, saying their client was a completely independent entity and should not be made liable. After hearing the arguments, Chief Justice Misra recorded in the written order that the court was of the considered opinion that Mr. Palaniswami was the “real contesting party”. “Issue notice to respondent no. 3 (Palaniswami), with a stipulation that he shall remain personally present before this Court on November 28, 2017, failing which a non-bailable warrant of arrest shall be issued against him, apart from attaching his properties,” the Supreme Court ordered. The order was uploaded on November 8. The Court observed in the order that there was no need to issue notice to the other respondents in the case. The Case involves the transfer of Sporting Pastime India Limited, a 100% subsidiary of KSL, to Mr Palaniswami and his nominees in 2004. However, the allegation against Mr. Palaniswami was that he failed to make the payment in consideration for this transfer. Kasturi & Sons Ltd. Had taken Mr Palaniswami to arbitration. An arbitral award was passed against Mr. Palaniswami to return Sporting Pastime to KSL. This award was upheld up to the Supreme Court. KSL had moved the National Company Law Tribunal to rectify the shareholding of the company in light of the award. The tribunal too had ordered in favour of KSL. This order was appealed by Cheran Properties Ltd and dismissed by the National Company Law Appellate Tribunal (NCLAT). The present special leave petition by Cheran was against the NCLAT order. UNI
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