Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2023 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 45 - MADRAS HIGH COURTSeeking removal of defendants 2 to 8 from the Trusteeship of the 1st defendant Maha Semam Public Charitable Trust - seeking direction to defendants 2 to 8 to render accounts relating to the Maha Semam Public Trust properties along with the original documents, title deed etc - seeking to order inventory of the movable and immovable properties of the 1st defendant Maha Semam Trust - seeking for settling a scheme for a proper administration of the 1st defendant Maha Semam Trust in future - seeking to direct payment of cost of this suit. Prima Facie case - HELD THAT:- The control of the 9th respondent Company was transferred to M/s.DWM [a foreign investor] following the revocation of proxies on 25.10.2011 coupled with the subsequent change in Board composition by resignation of 2nd and 9th respondents successively on 25.10.2011 and 29.11.2011 respectively. These facts are not in dispute as the plaintiffs have not denied the factual events stated in the counter affidavit filed by the 9th respondent before the Hon’ble Judge. Therefore, the prayer in OA.No.520/2013 even on the date of application is not maintainable. As it is pointed out earlier, there cannot be an injunction to over turn an event that has occurred by operation of law. The very object behind this litigation by filing a suit under Section 92 of CPC is on the basis of serious allegation that the 2nd respondent/2nd defendant, the promoter of 9th respondent Company after his induction in the 1st respondent Trust, diverted the funds of the Trust by formulating a systematic and a calculated design. It is admitted that no document is produced by the petitioners to show systematic diversion of funds of Trust in favour of 9th respondent Company. The plaintiffs now rely upon the interim report of the Advocate Commissioner pointing out that he could not collect the Books of Accounts and other details from the 1st respondent/Trust. The object of the Trust is not to carry on business and no activity with profit motive. No one could assume accumulation of huge funds by Trust. The 9th respondent is an independent Company incorporated under the Companies Act, 1956. The 2nd respondent is not in the Management of 9th respondent Company and is no more in control of 9th respondent Company after the increase of share capital with the investment of Rs.50 Crores from M/s.DWM. The Court is unable to find anything to probablise the case of petitioners. This Court has already referred to the findings of the Hon’ble Judge regarding collusion among family members of the 1st respondent Trust. It appears that the 1st plaintiff is no more. The petitioners are not the shareholders or persons interested in the affairs of the 9th respondent Company. This Court is also convinced that the suit was engineered by the 2nd respondent/2nd defendant in collusion to get an order what the 2nd respondent may require but would not get directly against 9th respondent. In the case on hand, this Court has already found that the Hon’ble Judge while disposing of the application, has gone in depth to lift the veil and identify the real cause for the litigation and the real person behind the litigation. Therefore, the conduct of petitioners in this case militates against the bona fide as held by this Court earlier. Further, from the whole gamet of facts, this Court finds that the petitioners have not come to Court with clean hands. Legal Injury - HELD THAT:- The Hon’ble Judge already recorded the finding that the petitioners have not come with clean hands. In the present case, this Court has already indicated that the petitioners have not sought for any interim relief to protect the interest of the 1st respondent/Trust in relation to the mischief as stated in the plaint, played by the 2nd defendant and his family members who allegedly diverted funds of Trust. This would also show the conduct of the petitioners targeting the 9th respondent Company alone - this court finds no prima facie case or balance of convenience in favour of petitioners/plaintiffs to grant any interim injunction as prayed for and we also find that serious injury is likely to be caused to the 9th respondent in case this Court extend the order of status quo any further. Petition dismissed.
|