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2007 (10) TMI 396 - HIGH COURT OF MADRASTransfer of Wind Energy Division from the first defendant to the second defendant - applicant seeking interim injunction restraining the second defendant from carrying on business of Wind Energy Division under any other name or through any other person and restraining the second defendant from in any manner pending compliance with the terms and conditions of sanction accorded by the shareholders of the first defendant to the defendants not to sell, pledge, mortgage or transfer the Wind Energy Division Held that:- When pursuant to the slump sale agreement between D1-NEPC and D2-SWL, Wind Energy Division was sold to D2-SWL on certain conditions and consent was given by all the shareholders to that transaction by postal ballot, now the applicant/plaintiff cannot raise any objection and it cannot be considered as she has not made out any prima facie case as has been adumbrated above and has been held by the Supreme Court that a shareholder has a right to participate only in the profits of the company and has no right in the property of the company, the relief sought for in these applications are not related to the profits of the company but related to the property of the company, which cannot be entertained. Consequently, the applicant/plaintiff has no locus standi to raise objection pursuant to the terms of agreement between D1-NEPC and D2-SWL. It is well-settled that interim injunction would be denied in a case where granting of it would cause greater hardship to the defendant. The balance of convenience lies only in favour of D2-SWL. The plaintiff has neither established prima facie case nor has shown that the balance of convenience lies in her favour. On the other hand, if the interim injunction is allowed to continue, D2-SWL having invested huge amount would be subjected to irreparable loss and hardship. Having regard to the facts and circumstances of the case, the interim injunction already granted is to be vacated.
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