LexMR. VIKRAM BAKSHI & ORS. versus MS. SONIA KHOSLA (DEAD) BY LRS.
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A B [2014) 6 S.C.R. 762 MR. VIKRAM BAKSHI & ORS. v. MS. SONIA KHOSLA (DEAD) BY LRS. (Special Leave Petition (Criminal) No. 6873 of 2010 MAY 08, 2014 [SURINDER SINGH NIJJAR AND A.K. SIKRI, JJ.) Company law: Collaborative agreement - Two groups joined together for collaborative business venture - Dispute C between them with regard to appointment of Director and shareholding - Company petition before the Company Law Bo.ard (CLB) - Interim order made by CLB - Stay of interim order by High Court - Challenged - Contempt petitions and petitions u/s.340 Cr.P.C. also filed - Held: Numerous cases D pending between the two groups including contempt petitions (civil or criminal) and petitions u/s. 340 Cr. P. C. -· There is complete deadlock so far as affairs of the company are concerned and unless the parties reconcile there is no chance of joint venture - Suggestion made by one Group for earl~ E decision of Company Petition before the CLB as a bette alternative so that at least main dispute between the parties is adjudicated at the earliest - The other group agreeing to this course of action - In view of agreement between both the parties on the procedural course of action to give quietus to F the matters, SLP, Contempt petitions and petitions u/s.340, Cr. P. C. disposed of - CLB directed to decide Company Petition within 6 months - Parties to maintain .status quo during pendency of Company Petition - Alternative Dispute Resolution. G Alternative Dispute Resolution: Mediation - Purpose and benefits of - Discussed - Code of Civil Procedure, 1908 - s.89. The respondents-K group and the petitioners~B H 762 VIKRAM BAKSHI & ORS. v. SONIA JSHOSLA (DEAD) 763 BY LRS. Group joined together for collaborative business venture. A Owing to certain problems between the tWo groups, the project came to stand still. K Group filed petition under Sections 397 and 398 of the Companies Act against the B Group praying for an order for removal of the petitioners from the Board of Directors of the company B and that directions of B Group had ceased to be Directors on 30.9.2006 since they were not confirmed in the AGM of the Company. Meanwhile, on 18.12.2007, a meeting was held by the C K Group where the Board of the company appointed Directors of the company from K Group and allottecj 6.58 lakh equity shares to eleven persons of K Group. · The Company Law Board (CLB) passed orders dated 31.1.2008 directing the maintenance of status quo with D regard to the shareholding and the Directors of the Company as it existed on the date of the filing of th"e petition i.e. 13.8.2007. Observations were made in this order that the respondent-SK had tried to overreach the CLB by changing composition and to increase the share capital of the Company. Respondent-SK filed applications under Section 340, Cr.P.C. before the CLB alleging that certain forged documents were filed by B Group before E the CLB. The High Court stayed the operation of order dated 31.01.2008. Hence these SLPs. Contempt petitions and petition under Section 340 Cr.P.C. were also filed. Disposing of the SLPs, contempt petition and petition under section 340, CrPC, the Court F HELD: 1. More than 80 cases are pending between the parties. Most of these do not even touch the main G dispute as they are in the nature of either Contempt Petitions, (Civil or Criminal) or petitions under Section 340 Cr. P.C. etc. It would have been more appropriate for the parties to atleast agree to resort to mediation as provided under Section 89 of CPC and make an endeavour to fif']d H 764 SUPREME COURT REPORTS [2014] 6 S.C.R. A amicable solution of the dispute, agreeable to both the parties. One of the aims of mediation is to find an early resolution of the dispute. The sooner dispute is resolved the better for all the parties concerned, in particular, and the society, in general. For parties, dispute not only B strains the relationship but also destroys it. And, so far as society is concerned it affects its peace. So what is required is resolution of dispute at the earliest possible opportunity and via such a mechanism where the relationship between individual goes on in a healthy c manner. [Paras 13 and 15] [755-A-B-E-H] 2. MEDIATION is one such mechanism which has been statutorily brought into place in Indian Justice System. It is one of the methods of Alternative Dispute · Resolution and resolves the dispute in a way t
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