NCLAT : In VLS Finance Limited vs. Southend Infrastructure Pvt. Ltd. & Ors.

The powers of NCLT in a petition complaining Oppression and Mismanagement are very wide to safeguard the interest of the Company and though the Appellant being an Intervener had objections and wanted NCLT to keep the Petition pending, if the NCLT thought it fit to let the withdrawal take place, we do not think that the discretion exercised by NCTL was arbitrary.

It is true that compared with the Code of Civil Procedure, the power of NCLT is broader when Rule 82 of the Rules is perused. NCLT would have absolute discretion regarding the withdrawal and the Petition cannot be withdrawn unless the NCLT grants leave. The discretion to grant permission or refuse cannot be exercised arbitrarily. In the present matter, it was stated before the NCLT that the contesting parties had settled their disputes between them and the Petitioner was seeking withdrawal. In such circumstances, only because the Appellant – Intervener had objections and wanted NCLT to keep the Petition pending, if the NCLT thought it fit to let the withdrawal take place, we do not think that the discretion exercised was arbitrary.

Link : https://nclat.nic.in/Useradmin/upload/16636576625b92520ac49a6.pdf