Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2011 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (2) TMI 1279 - HC - Companies LawOppression and mismanagement – company is closely held company of six brothers - family had another business venture run by another closely held company which borrowed funds from Bank - loan was secured by a corporate guarantee executed by Aruna Theatres and Enterprises - default committed by them - bank initiated proceedings - Receiver appointed by the Debts Recovery Tribunal had taken over charge of the management of the theatres – receiver alleged acts of oppression and mismanagement - On basis of such report instant petition under section 397/398 was preferred by legal heirs of six brothers and other shareholders of company making out a case that facts disclosed in such report established oppression and mismanagement – respondent challenged the petition on the ground that there were no continuing acts of oppression and mismanagement as on the date of filing of the company petition – Held that:- temporary suspension of perpetration of acts of oppression and mismanagement by receiver, not for benefit of company but for benefit of bank, could not entitle respondents to contend that there were no acts of oppression and mismanagement on date of filing of instant petition - company petition was maintainable - In favour of company
|