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2019 (7) TMI 525 - Tri - Companies LawOppression and Mismanagement - Continuation of petition by the legal heir of deceased petitioner - Whether the acts of oppression and mismanagement is still maintainable, at the instant of the son of the petitioner, as legal heir since he is not part of those acts and oppression and mismanagement alleged to have been made by the original petitioner? HELD THAT:- It is a settled position of law that the acts of oppression and mismanagement should not only be existing at the time of filing company petition, they should also being continuous harsh and burdensome leading to the conclusion that the directors action lack in probity and those grounds should justify winding up of the company under the just and equitable clause. As per law, as legal heir of his father Mr. A. Mayuresh Bhat (son) can get deceased father estate, which includes shares held by his father, after applying for the same as per law and respondent No. 1-company has to consider it. Admittedly, shares of original petitioner is not in dispute and this is not the issue raised in the instant petition by the son. However, the son can hardly maintain the company petition which is filed by making various acts of oppression and mismanagement by his father (Shri Arun Bhat). However, Mr. A. Mayuresh Bhat (son), after getting transmission of the shares of his father, he may claim his rights basing on such transmission, in accordance with law. Moreover, the son is prima facie holding 4 per cent. shares by contributing share capital of ₹ 2,00,000 and share application of ₹ 42,100 and also stated that he is hardly involved in the affairs of the company by attending the annual general meeting/board meetings as contended by the respondents. Therefore, he cannot maintain instant petition filed by his father, under section 397/398 of the Act, 1956. The petitioner failed to substantiate the acts of oppression and mismanagement as alleged by him in the company petition and some of reliefs as sought in the main company petition are also not tenable and cannot be granted. However, the legal heir can claim transmission of shares of his father by submitting necessary documents to respondent No. 1-company and thereafter, the company has to take suitable action for the same. And thereafter, if the son still feels that respondent No. 1-company is resorting to acts of oppression and mismanagement, he is at liberty to file a fresh company petition in accordance with law. Petition dismissed.
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