New Delhi: The Supreme Court on Thursday while hearing a plea of United Breweries against Karnataka High Court’s order restraining them from proceeding before the Debt Recovery Tribunal (DRT), the apex court directed the petitioner to approach relevant court or tribunal for the relief.
A bench led by Chief Justice of India SA Bobde heard the petitioners plea which asked them to quash the order of Karnataka high court.
According to Advocate Mahesh Agarwal, Karnataka High Court gave them the nod to file an appeal before the Enforcement Directorate (ED) and Debt Recovery Tribunal but they are not in a position to use the company’s seal as it is in liquidation.
The bench asked when the appeal was allowed by the Karnataka HC and when the company had applied for liquidation.
Meanwhile, Solicitor General Tushar Mehta argued that under section 457 of the old company law, no company can apply for further proceeding after they entered into the liquidation.
As CJI questioned the remedy for the company, the SG said the petitioner should approach only the company court.
After hearing the arguments from both the sides, the bench passed an order that the Special Leaving Petition by the petitioner is not entitled before the Debt Recovery Tribunal and Debt Recovery Appellate Tribunal.
“The petitioner can approach the relevant court or tribunal for further proceedings following the company law. Such an application is to be made by the petitioners who were erstwhile directors representing the company. All the contentions shall remain open,” the bench noted.
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