# In the matter of Venkata Shiva Prasad Devulapalli and Anr. vs. M. Chandra Sekhar Rao and Ors.

> NCLAT judgment dated 2025-04-07. Citation: TCN-2025-NCLAT-00116. The appellant challenged an order dated 27.09.2024 passed by the Tribunal in CP…

- **Court:** NCLAT
- **Order date:** 7 Apr 2025
- **Citation:** TCN-2025-NCLAT-00116
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/venkata-shiva-prasad-devulapalli-and-anr-vs-m-chandra-sekhar-rao-and-ors-007b38f4

## Summary

### Background

The appellant challenged an order dated 27.09.2024 passed by the Tribunal in CP No.47/241/HDB/2023 under Section 421 of the Companies Act, 2013. The challenged order was interlocutory, granting interim protection to the respondents and directing the tentative Annual General Meeting (AGM) scheduled for 27.09.2024 to be kept on hold. The appellant contended that the Tribunal selectively decided IA No. 283/2024 without adjudicating IA No. 282/2024 first, which sought the appointment of an independent person or advocate commissioner for holding the AGM.

## Facts

Mr. Venkata Shiva Prasad Devulapalli and Mr. M. Sai Sudhakar filed an appeal against M. Chandra Sekhar Rao and others, including M/S Polygon Regractories Private Limited. The appeal challenged an interim order passed by the Tribunal in CP No.47/241/HDB/2023, which suspended the Annual General Meeting (AGM) scheduled for 27.09.2024. The appellants argued that the Tribunal should have decided IA No. 282/2024, which sought the appointment of an independent person or advocate commissioner for the AGM, before deciding IA No. 283/2024, which led to the suspension of the AGM. The earlier order of 14.09.2023 was cited as a precedent for appointing an advocate commissioner. The core issue revolves around the appealability of an interlocutory order and the sequence in which

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## Issues and analysis

### Issue 1: Whether the appeal would lie under Section 421 of the Companies Act, 2013, against an interim …

**Ratio:** An order is appealable under Section 421 of the Companies Act, 2013, if it substantively

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**Reasoning:** The court reasoned that the interim order, which suspended the AGM, was intended to

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**Interpretation:** Section 421 of the Companies Act, 2013, should be interpreted to exclude

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**Application:** The court applied the ratio to the facts of the case, noting that the order

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** VENKATA SHIVA…
- **Respondents:** M/S POLYGON…; M. CHANDRA SEKHAR…
- **Advocates:** Anshuman…; Asad Hu…

## Timeline

- **2023-09-14 — Tribunal…**: Tribunal passes an order appointing an advocate commissioner to conduct the Annual…
- **2023-01-01 — CP No.47/241/…**: Proceedings initiated in…

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