1. The instant application has been filed by the company seeking for various interim reliefs on the grounds stated in the application.
2. Heard on the application. Satyam episode does not require any elaboration. With the view to protect the interests of the company, its large work for customers and more so, in the larger public interest, the Union of India, invoked various provisions of the Companies Act before this Board and sought for urgent ex parte interim reliefs. Forming a prima facie opinion that there existed sufficient grounds to exercise the powers of this Board under section 403 of the Act, to regulate the affairs of the company, by an order dated 9-1-2009, while suspending the then existing Board of Directors, I also authorized the Union of India to appoint, in the name and on behalf of this Board not more than 10 eminent persons as directors of the company. Accordingly, the Central Government has appointed, for the time being, 6 eminent persons as directors. Since, they have been appointed in the name and on behalf of this Board, they are like court officers and therefore every State or Central Government entity is bound to assist and support them in their endeavours, more so, when they have joined the Board as a measure of public service.
3. However, ignoring the larger public interest involved in their assuming the onerous responsibility of reviving the troubled company, PF authorities have threatened to initiate action against the directors, which action is not sustainable. Therefore, I restrain the PF authorities from initiating any action against the present directors of the company without the leave of this Board, more so in respect of omissions, commissions and/or default on the part of the suspended board of directors. To ensure that the present Board of directors discharges its function without any apprehension of being subjected to civil, criminal or punitive action, I direct that none of the State or Central Government agencies shall, in exercise of their regulatory, enforcement or like such powers, initiate any action, civil, criminal, punitive, coercive against the present directors in discharge of their collective or individual responsibilities, without the prior leave of this Board. This direction is applicable to all the functionaries that have been or likely to be appointed by the present board. However, the Board of Directors, shall co-operate with the concerned agencies as may be necessary, whenever any information or documents are required by these agencies.
4. Since as per my order dated 9-1-2009 the board has been authorized to exercise and discharge all powers as per the articles and the Act, this authorization is applicable to rising of finances in the form of loan or otherwise and also to mortgage, charge and encumber any of the movable and immovable assets of the company including providing them as securities, if need be.
5. The Central Government shall endorse a copy of this order to all the Central Ministries for circulation to their subordinate regulatory, enforcement agencies for their information. Likewise a copy of this order be endorsed to the Government of andhra Pradesh also for such circulation amongst the State agencies.