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2017 (7) TMI 223 - NATIONAL COMPANY LAW TRIBUNAL, CHENNAIOppression and mismanagement - removal from the Directorship - Held that:- The collateral security given by the petitioner to the bank cannot be charged for such losses caused to 1st Respondent company. The acts of omission and commission of R2 and R3 have caused losses to 1st Respondent company which are against the legitimate expectations of the petitioner. The same may not be oppressive in nature, but constitutes mismanagement of 1st Respondent company. Issue No. l partly proved against R2 and R3. Since we have concluded that issue No. l is partly proved against R2 and R3, the petitioner is not liable for the losses that have been suffered by R1 company, due to the acts of omission and commission of R3, and R2 failed to initiate corrective measures. Therefore, it is held that R3 alone shall be liable to pay 1st Respondent company a sum of ₹ 16.48 crores with bank interest being the money overdrawn by him through current A/c No.2233 operated by R3 as sub-account. For the reasons stated above, R3 is hereby removed from the Directorship of the company and the petitioner is appointed as Director-cum-Managing Director of the company who shall perform his duties diligently to run the day to day affairs of the company smoothly along with R2 who is directed to render all assistance and support to the newly appointed Director-cum-Managing Director. Further, 1st Respondent company shall not allow third party to use the goodwill of the company for the benefit of third party. The petitioner is also forbidden to compete with 1st Respondent company in any manner, so that the company could grow in future. Accordingly, the petition is disposed of.
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