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2013 (10) TMI 801 - KARNATAKA HIGH COURTIncreased in authorized capital - Change in registered office - CLB has declared the action the company as illegal - Held that:- share-holding of the rival factions is not in dispute. An attempt is made by the respondents, who were in management of the company to increase their share by increasing the authorized share capital of the company and allotting the shares in their favour. When an opportunity was given to them in the proceedings to explain their conduct, except filing the statement denying all the allegations, they were not able to justify their action. On the contrary, neither did they co-operate with the Chartered Accountant appointed by the Company Law Board nor did they appear before the Board and contested the claim in spite of several opportunities being given. This conduct clearly demonstrates, who is the cause for break-down in the administration of the Company. Therefore, the Company Law Board had no option except to pass an ex parte order which is passed in accordance with law. Therefore, no case for interference is made out - If the conduct of the appellant before the Board was fair and if they had any respect to the law and to the Company Law Board and they had co-operated in conducting the proceedings, the Company Law Board could have exercised its discretion in the order - Appeal dismissed.
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