SC's interim order on Samata Foundation dispute raises legal questions on its AGM, subsequent decisions

Published On: June 27, 2023 10:23 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, June 27: The Supreme Court (SC) has recently issued an interim order regarding the ongoing dispute surrounding the Annual General Meeting (AGM) called by the contested Executive Chairperson of Samata Foundation, and the subsequent actions taken.

Dr. Sumitra Manandhar Gurung, one of the Founding Board Members of Samata Foundation, and Board Member Sarita Pariyar had earlier filed a writ petition against the unlawful letter issued by Chairperson Pradip Pariyar, calling for the AGM held on February 13, 2023, and challenging various decisions made during the meeting. The petitioners also sought the dissolution of the proceedings, including the documents filed with the Company Registrar's Office, initiated under Chairperson Pariyar's authority.

On June 25, a single bench of Justice Prakash Kumar Dhungana at SC overturned the interim order previously issued by the Patan High Court on May 21, which had deemed the AGM of the Foundation and subsequent actions legal. The SC order states, "In accordance with Article 57 of the Civil Code 2074 BS, unless a decision based on a discussion between both parties and the Convenience Balance Approach is reached, a temporary interim order is issued demanding a suspension of the decisions made during the AGM held on February 13."

Advocates Purnaman Shakya, Chandrakant Gyawali, Megharaj Pokharel, and Deepakraj Joshi presented arguments on behalf of the petitioners, Dr. Gurung and Pariyar, during the SC hearing. Additionally, petitioner Sarita Pariyar spoke during the hearing.

Earlier, Dr Sumitra Manandhar Gurung and Sarita Pariyar, as members of the Board, filed a case in the High Court of Patan, seeking a provisional order to dissolve the unlawful and misguided AGM and subsequent actions. During the first hearing of the writ petition on April 30, a short-term interim order was granted to suspend the decisions made during the disputed AGM in the name of the Company Registrar's Office and the Samata Foundation.

During the second court hearing on June 22, a joint bench consisting of Judges Subhash Paudel and Narishar Bhandari decided not to continue the previous temporary interim order. In their order, the Judges concluded that "the actions and functioning of the opposition side, the Samata Foundation, would be significantly disrupted, resulting in more inconveniences than that faced by both the petitioners. Furthermore, no irreparable harm to the petitioners was found."

Dr Sumitra Manandhar Gurung and Sarita Pariyar then approached the SC to challenge the High Court's order and seek a new ruling. The SC inquired with the Patan High Court regarding the appeal to overturn its order and requested a detailed report on the matter.

After receiving the report, the apex court summoned the defendants of the case for further discussion. The defendants include the Company Registrar's Office, the disputed executive committee of Samata Foundation, the honorary member nominated as the ad-hoc/Executive Chairman Pradip Pariyar and the Chairperson elected during the contested general meeting of the Samata Foundation Dr. Madan Pariyar, Founding Chairman and Lifetime member Padam Sundas, honorary member Rajkumar Trikhatri (Pariyar), and Sushil Adhikari, a chartered accountant who conducted a financial audit of the Foundation, among others.