Canara Bank & Ors vs National Thermal Power Corp. & Anr

The Supreme Court ruled that the High Court erred in setting aside the Company Law Board's orders and referring disputes to a High Powered Committee under the precedent established in Oil & Natural Gas Commission & Anr. v. Collector of Central Excise [1995 Supp. (4) SCC 541]. The Court clarified that the applicability of the ONGC case was contingent upon the existence of a genuine dispute, which was not present in the current appeals. Consequently, the Court upheld the orders of the Company Law Board, emphasizing the need for a legitimate dispute before referral to a committee under Section 111 of the Companies Act, 1956.