Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 02.09.2026
Case Overview
The appeal was filed by Rock Bottom Mines Private Limited & Others against an interim order dated 21.08.2026 passed by the NCLT Chandigarh Bench in C.P. No. 65/CHD/HRY/2026 (Sanjeev Chaudhary vs. Rock Bottom Mines Private Limited & Ors.). The original petition was filed under Section 213(b)(i) & (ii) of the Companies Act, 2013, seeking investigation into company affairs, which was also sought to be read with Sections 221 and 447 of the Act.
On the very first hearing date (21.08.2026), without soliciting response from the appellants, the NCLT passed an interim order that: (a) appointed a Retired Hon'ble Judge of Punjab and Haryana High Court as Administrator; (b) directed the SHO to immediately confiscate all company records; and (c) restricted appellants (respondent Nos.1 to 6 in original petition) from removal, transfer or disposal of funds, assets and properties of the company. The petitioner was directed to accompany police officials to help identify and carry out these directions.
The appellants argued that the Tribunal passed this order without considering facts on record or recording proper findings, merely stating "the Tribunal is of a prima facie satisfied" without supporting reasons. They contended that such an order with serious civil consequences and impact on final relief required reasoned justification, especially when passed on the first hearing date.
Final Outcome
The NCLAT quashed the impugned order exclusively on the ground that it was a non-reasoned order that did not reflect applicability of mind or consideration of material on record. The matter was remitted back to the NCLT Chandigarh Bench with a request to reconsider the interim application afresh after providing proper opportunity to all parties and to decide the same in accordance with law, particularly by assigning reasons upon consideration of material.
Topics: Corporate Governance, Legal Procedure, Interim Relief