HC directs KCCI not to operate bank accounts

Excelsior Correspondent
Srinagar, Oct 1: High Court today directed the Kashmir Chamber of Commerce & Industries (KCCI) not to operate its bank accounts and asked the trial court to frame an issue with regard to the jurisdiction of the court to hear the suit filed against the KCCI.
Disposing of an appeal filed by the KCCI against the order of trial court, Justice Ali Mohammad Magrey directed that the orders of trial court passed on June 20 and 25 this year shall remain in force.
Justice Magrey, however, said that trial court will frame an issue with regard to the jurisdiction of the court by treating it a preliminary issue and proceed to determine the same in accordance with law.
Rival party before the trial court has taken a specific plea that the suit filed against the KCCI is not maintainable as it was a company incorporated under Indian Companies Act and the controversy relates to any company cannot be dealt with by a civil court.
Court directed the trial court to consider thereafter interim application and application for appointment of receiver for the KCCI. Trial court in its two orders has temporarily restrained the KCCI body from operating the bank accounts of Industry as and directed them to preserve the record as exists of June 25 and not to meddle with any document, emails, communications and transactions issued in favour of its opponent.
The appeal has been decided after the court on previous date of hearing had observed that the parties are not interested in holding the elections for the KCCI as they have not responded to the court proposal.
Court had asked the KCCI and its opponent party to provide the suitable names of members of Industry to enable the court to constitute and nominate the requisite committee for conducting the elections of KCCI.
Court had also in order to perform the task entrusted to such committee in a transparent manner proposed to nominate the Deputy Commissioner Srinagar assisting two retired Judicial Officers of the rank of Principal District Judges as an overall supervising officer to oversee the tasks of the said committee.
Court had also made it clear beforehand that in the event the parties give their consent as sought from them, and furnish the names of members, the court tentatively proposes to direct issue of the election notification by the concerned committee on September 28 and complete the requisite processes of filing of nominations on October 10 for conducting the polling on October 22.
The earlier committee of KCCI elected in the year 2018 as per the court directions shall seize to exist with effect from the evening of September 27. Justice Magrey directed the Registry to immediately return the record to the trial court along with today’s court order and directed the parties to appear before the court on October 8 for further proceedings.