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2019 (9) TMI 1401 - NATIONAL COMPANY LAW TRIBUNAL, HYDERABADOppression and mismanagement - Section 241, 242 & 244 of the Companies Act, 2013 - main contention of the Petitioners is that Respondents 2 & 3 who are now managing the Company, who are the Directors of the Company are indulging in oppression and mismanagement - HELD THAT:- The Petitioners were on the Board. Subsequently they resigned. Thereafter, Respondents 2 & 3 became Directors. The appointment of Respondents 2 & 3 to the Board is not denied. The resignations by Petitioners as Directors of the Company is also not in dispute. The contention of Petitioners that AGM was held for the years 2016-17 & 2017-18 without giving notice to the Petitioners. This matter to be looked into at the time of final hearing. The further case of Petitioners that Respondents indulged in acts of oppression and mismanagement such as not convening EGM though demanded by the Petitioners. This aspect will also be looked into at the time of final hearing on the main petition. There was correspondence between petitioners and Respondents with regard to allotment of shares to the Petitioners by converting the debt into equity. The contention of Respondents that it is Respondent No. 2 who gave money as unsecured loans. However. Petitioners got certain part of debt converted into equity and allotted the shares to themselves. This is the main allegation made by Respondents 2 & 3 against petitioners. This needs to be considered in the main petition at the time of final hearing. When Company is in urgent need of money, the only alternative with the Company is to go for rights issue. The other aspects raised by the Petitioners that there is no need to go for rights issue are all matters to be considered at the time of final hearing. At present, the offer is also made to the Petitioners and it is for the Petitioners either to subscribe or not to subscribe for the rights issue - At present there is no need to grant any interim reliefs. The main petition itself is ripe for hearing. Therefore, at present we do not consider any ground to grant any interim relief in favour of petitioners. Even if rights issue is allowed to continue and allotment is to be made as per issue, it is subject to the result of the main petition. So interest of the Petitioners if any is safeguarded with rights issue if allowed to be proceeded with. We make it clear, it is subject to the result of the main petition. Petition dismissed.
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