Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 1301 - HC - Companies LawOppression and mismanagement - Held that:- In the instant case, the Company does not have any commercial activities. It has the immovable properties which are let out to the different tenants. The interest of the complaining members are sufficiently protected by appointment of the special officer/receiver who is directed to collect the rents from the tenants and to keep the same in separate account. It is only the share holding patterns as well as the introduction of the new directors are alleged by the petitioners and the supporting respondents. The main application for oppression and mismanagement is pending and the Court is not denuded of any power to annul all the action which amounts to oppression and mismanagement. This Court, therefore, does not find that the proceeding under Section 397 & 398 at the time of initiation was validly instituted and assumed the representative character, does not become invalidated because of the reduction of the requisite shares subsequently. Although it is much debated by the warring parties that the issuance of the duplicate shares is clearly impermissible unless it is proved that the original is lost or the duplicate shares and can only be issued to the registered member, this Court feels that the same being the subject matter in the original proceeding and, therefore, is required to be dealt with for the purpose of granting the final relief.
|