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2015 (4) TMI 1299 - COMPANY LAW BOARD, MUMBAIOppression and mismanagement - siphoning of funds - invocation of Section 237(b) of the Companies Act - dismissal of the petition sought contending that no case for passing an order to the Central Government to appoint an Inspector for investigation into affairs of the Company is made out as contemplated in Section 237(b) of the Act - time limitation - HELD THAT:- There is apparent delay in filing the petition, which has not been explained by the petitioner. It is a settled proposition of law that the doctrine of delay and laches is applicable to the proceedings under the Companies Act filed before the CLB - thus, the petition also suffers from delay and laches and deserves to be dismissed on this ground also. Whether a case is made out under section 237(b) of the Act to pass an order for investigation into affairs of the Respondent No. 1 Company? - HELD THAT:- The provisions contained in Section 237(2) of the Act do not permit a fishing expedition into the affairs of a company. The allegations of the petitioner primarily rest on an isolated transaction of 2008 appearing in the balance-sheet of the Respondent No. 1 Company and in my judgment, this is not a sufficient ground to warrant an order for investigation into the affairs of the Company. Further, taking into consideration the most pertinent fact that the Respondent No. 4 has not come forward to file its reply, nor rebutted the fact of having received back the amount-in-question, it is established that the Respondent No. 1 Company has paid back the amount to the Respondent No. 4 as shown in its Books of Accounts - It has been held in various decisions that the powers conferred on the CLB under Section 237 of the Act are ought to be exercised carefully on proper facts and circumstances considering its far-reaching consequences. Therefore, no case as alleged by the Petitioner, is made out. There are no merits in the petition - petition dismissed.
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