Post-Reservation Application to Deposit Rs. 15.62 Crores Under Rule 11 Not Maintainable: NCLAT Dismisses Appeal [Read Order]
The appellant sought to deposit Rs. 15.62 crores and obtain a stay after the appeal was reserved for judgment. The NCLAT held that such post-reservation applications under Rule 11 are not maintainable.
Appeal - Taxscan
Appeal - Taxscan
The Delhi bench of the National Company Law Appellate Tribunal (NCLAT) in a recent case held that a post-reservation application to deposit Rs. 15.62 Crores under Rule 11 is not maintainable.
The appellant Satinder Singh Bhasin, Director of Bhasin Infotech and Infrastructure Pvt Ltd, filed an application under Rule 11 of the NCLAT Rules, 2016, seeking permission to deposit Rs. 15.62 crores, the amount due to 55 unsettled allottees to demonstrate bona fide and to seek a stay on the pronouncement of the final order in the pending appeal. The main appeal had already been heard and reserved for judgment.
The learned counsel for the appellant submitted that although the total number of allottees shown in the company petition was 103, only 55 customers remained unsettled, and the amount due to them was Rs. 15.62 crores. Without prejudice to its rights, the appellant expressed willingness to deposit this amount with the Tribunal to demonstrate its bona fide intention and to show that there was no default
The two-member bench of the Tribunal, comprising Yogesh Khanna(Judicial Member)and Ajai Das Mehrotra (Technical Member)held that once a matter is reserved for judgment, no further applications can be entertained, as parties’ rights and privileges stand concluded.
Relying on Arjun Singh v. Mohindra Kumar (1963), Rajesh Dua v. Rajiv Goyal (2024), and Loramitra Rath v. JM Financial ARC (2023), the Tribunal ruled that post-reservation applications, including those for deposit or stay, are not maintainable. The application was accordingly dismissed for lack of merit.
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