A company, XYZ Ltd., is involved in a commercial dispute with its minority shareholders regarding alleged mismanagement and oppression. The minority shareholders filed a petition before the National Company Law Tribunal

CS Professional · Drafting, Pleadings and Appearances · PYQS · June 2025
A company, XYZ Ltd., is involved in a commercial dispute with its minority shareholders regarding alleged mismanagement and oppression. The minority shareholders filed a petition before the National Company Law Tribunal (NCLT), seeking various interim reliefs. The Tribunal, after hearing the parties, passed an interlocutory order restraining the company's board from passing any major financial resolutions without prior approval. XYZ Ltd. contends that the order is unjust and seeks to challenge it before the National Company Law Appellate Tribunal (NCLAT). However, the respondents argue that the order is purely interlocutory and not subject to appeal. Meanwhile XYZ Ltd. also files a revision petition before the High Court under its supervisory jurisdiction, claiming that the NCLT exceeded its jurisdiction. The respondents counter that the power of revision cannot be exercised in this case since an alternative remedy exists. Additionally, XYZ Ltd. argues that even if the appeal is not maintainable, the revision petition should be treated as an appeal in the interest of justice. The respondents dispute this claim, citing procedural limitations. Furthermore, as the main dispute progresses, the case reaches the trial stage where questions arise regarding the admissibility of certain evidence and the role of the Tribunal in assessing disputed facts. Answer the following questions: The extent of powers of revision under relevant laws and whether the High Court can exercise its jurisdiction in this case.

Answer & Explanation:

Generally, the High Courts do not exercise supervisory jurisdiction over tribunals with a complete appellate hierarchy, such as NCLT → NCLAT → Supreme Court. However, the High Court has revisional powers under Article 227 of the Constitution, which allows it to ensure that lower courts and tribunals do not exceed their jurisdiction. A civil revision petition under Article 227 can be filed in NCLT's cases, but it is subject to significant limitations. The High Court will likely dismiss such petitions if there are alternative remedies available or if the NCLT's jurisdiction has not been exceeded. Section 115 of the Code of Civil Procedure (CPC) provides for revision in cases where no appeal lies and where the subordinate court has acted beyond its jurisdiction or committed a material irregularity. In Punjab National Bank v. O.C. Krishnan (2001) , the Supreme Court held that supervisory jurisdiction should be exercised sparingly and only when substantial injustice has occurred. The High Court may intervene if the NCLT's order violates fundamental principles of justice, but it will generally defer to the statutory appellate mechanisms under the Companies Act.

Topics: Civil Procedure

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