Hyderabad: The Hyderabad High Court has dismissed two appeals filed by the Union of India against an order passed by the Company Law Board in Chennai, granted in favour of Tech Mahindra Ltd (formerly known as Satyam Computer Services Ltd).
The Union of India, represented by its assistant secretary of company affairs, moved the appeals against the order of Company Law Board in which the Board dismissed the pleas of Tech Mahindra and its company secretary Jayaraman by imposing fine on them in connection with the Satyam Computers scam.
They moved the pleas before the High Court contending that they have nothing to do with the scam, and the High Court referred their pleas to the Company Law Board.
While reminding the compounding applications filed by the company and Mr Jayaraman to the Company Law Board for its fresh consideration in accordance with law, the High Court directed that the Company Law Board to bear in mind the contentions of the parties and the aspects noted by the Court for deciding whether or not to permit the compounding of the offences. However, the Board penalised the petitioners while dismissing their pleas.
Aggrieved by the order, the Union of India moved the appeals. While dismissing the appeals, Justice Nagarjuna Reddy said, “This court indeed is unable to appreciate the conduct of the appellant herein in needlessly filing these appeals knowing well that the company and Mr Jayaraman have no complicity in the alleged commission of the scam with respect to which separate prosecution has been launched.”
The judge pointed out that “Such conduct on the part of the appellant would only encourage frivolous and vexatious litigation and discourage entrepreneurs with positive approach to undertake the arduous task of resuscitating the discredited companies such as the company in question.”
The judge also found fault with the member of the Board and asked the Centre to keep vigil on the conduct of the member and imposed Rs 10, 000 on each of the appeal.