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2019 (8) TMI 79 - AT - Companies LawMaintainability of petition - dispute regarding oppression and management of Producer company - Fraud, misfeasance and misconduct against management towards the Company and its affairs - Producer Company - distinct entity - recovery of misappropriated funds of the Company which comprised of the hard earned money of the innocent agriculturist members - HELD THAT:- The provisions of Sections 241-242 of the Companies Act, 2013 cannot be invoked for settlement of disputes regarding oppression and mismanagement of a ‘Producer Company’. Such disputes would continue to be resolved through conciliation or arbitration. The Tribunal appears to have narrowed down the definition of ‘dispute’ for purpose of Section 581ZO by misinterpreting the explanation which only seeks to include certain types of disputes within the ambit of ‘dispute’ as defined in the aforesaid provision. The explanation cannot be read in a manner so as to restrict the meaning of ‘dispute’ as contemplated under the Section in the context of objects of the Producer Company and its being treated as a class apart. Also taking notice of the fact that the Tribunal has proceeded to return a finding that the dispute alleged in the Company Petition does not fall under the explanation of ‘dispute’ thereby usurping the jurisdiction vested in the ‘Arbitrator’ under Section 581ZO (2) of the Act, the impugned order cannot be sustained and is liable to be set aside. The impugned order suffers from legal infirmity and is unsustainable - appeal allowed - decided in favor of appellant.
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