Case Note & Summary
The case involved an application filed by Vimla Devi Sawalra and another under Rule 11 of the National Company Law Appellate Tribunal Rules, 2016, seeking modification and clarification of an earlier order dated 23rd September 2025 concerning the sale of properties by Shivgyan Developers Pvt Ltd. The applicants argued that the order did not explicitly mention the restriction on selling properties to related parties, which was a point raised during the hearing. The Tribunal noted that the order dated 23rd September recorded the respondents' submission that there was no intention to dispose of properties, but the clarification sought was deemed unnecessary as subsequent orders had already addressed the issue. On 18th November 2025, the Tribunal reiterated that the respondent should not dispose of properties to related parties without the appellant's consent. The Supreme Court later stayed the requirement for consent for stock sales but upheld the undertaking not to sell to related parties. The NCLAT ultimately dismissed the application for clarification, stating that the matter had been sufficiently addressed in subsequent orders. The Tribunal directed that the appeal be decided expeditiously, without expressing any opinion on the merits of the case.
Headnote
A) Company Law - Modification of Orders - Clarification of Undertaking - National Company Law Appellate Tribunal Rules, 2016, Rule 11 - The applicant sought clarification on the order regarding the sale of properties to related parties, asserting that the original order did not reflect this limitation. The Tribunal found no need for further clarification as subsequent orders addressed the matter adequately. Held that the application was dismissed (Paras 1-10).
Issue of Consideration
Whether the order dated 23rd September 2025 required clarification regarding the sale of properties to related parties.
Final Decision
The application for clarification was dismissed as the Tribunal found that subsequent orders had adequately addressed the concerns raised by the applicant.
Law Points
- Modification of orders
- Clarification of undertakings
- Sale of properties to related parties
- Consent for sale
- Compliance with previous orders
