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2007 (8) TMI 463 - HC - Companies LawWinding up - Circumstances in which a company may be wound up - Held that:- Even if there was no partition and the first petitioner was entitled to equal shareholding and say in management of the company along with his brother, the second respondent, the first petitioner having called upon the Reserve Bank not to renew or cancel the company’s licence, is enough for the first petitioner to be disqualified from seeking justice and equity in having the company wound up. The first petitioner’s exclusion and the third respondent’s induction on the company’s board need to be weighed against the first petitioner’s conduct. He may have been justified in alleging that company funds had been defalcated by his brother but in issuing dictates to the company’s bankers and in exhorting the Reserve Bank to revoke the licence issued to the company, the first petitioner took steps that impeded the functioning of the company. If then, the other remaining director excluded the first petitioner from the management of the company and inducted another to replace him, however illegal, such action can be justified to be in the interest of the company since the petitioners’ charge of defalcation against the second respondent was yet unproven. The petition fails and is permanently stayed
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