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2021 (2) TMI 453 - NATIONAL COMPANY LAW TRIBUNAL , KOCHI BENCHMismanagement and oppression - submissions of the Petitioners are that there is mismanagement and huge discrepancies in the Financial Statements submitted by the Respondent No.1 Company with the Registrar of Companies - whether the acts of Respondents as alleged by the Petitioners would indeed constitute an act of oppression against the minority shareholders or mismanagement or misappropriation of the company will affect the public interest at large, which calls for the intervention of this Tribunal? - HELD THAT:- It is profitable to refer the decision rendered by the Hon’ble Supreme Court in NEEDLE INDUSTRIES (INDIA) LTD. VERSUS NEEDLE INDUSTRIES NEWEY (INDIA) HOLDING LTD. [1981 (5) TMI 89 - SUPREME COURT], wherein the court laid down the yardstick as to when an act of the majority can be considered as oppressive under the provisions of Section 397 of the Companies Act, 1956. This Tribunal came to the conclusion that averments made by the Petitioners regarding oppression and mismanagement against the Respondents is considered to be an isolated one and not a continuous one for which this Tribunal cannot hold that there is Oppression and Mismanagement in the Company. In the instant case, the petitioner failed to prove the continuing oppressive acts conclusively and we cannot rely upon an act of the Directors as an oppressive act. Hence, this Tribunal came to the conclusions that whatever done by the Respondents is in the best interest of the Company which cannot be stated to be unfair which would prejudice the Petitioner’s interest in the Company or prejudicial to the public interest. Hence the Petitioners have no locus standi to approach this Tribunal under Section 241 praying the reliefs - this Tribunal is of the opinion that the petitioners could not make out a case for interference of this Tribunal invoking Section 241-242 of the Companies Act,2013. Petition dismissed.
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