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1965 (1) TMI 17 - SC - Companies Law
Whether the conduct of the affairs of a company by the majority shareholders was oppressive to the minority shareholders?
Held that:- The case of the appellant based on the agreement of July 27, 1954, therefore must fail and it must be held that even if that agreement was not carried out by the company, which was not bound by it, there can be no case of oppression of the appellant.
The slight delay in the payment of the full value of the shares cannot therefore in the circumstances be said to be so prejudicial to the interests of the company as to call for any action under section 398 of the Act. It has not been shown that view of certain actions taken by the new management without consulting the appellant, the company was landed in any difficulty and loss of profit which would show mismanagement of its affairs.
The appellant asked for production of certain documents in April, 1961, and those documents were made available for inspection by the appellant and were produced in court. It was for the appellant to take inspection of those documents if he so desired and the appeal court was right in pointing out that the learned single judge was not correct in drawing an adverse inference against the company that it had disobeyed the orders of the court and had not produced the documents called for and had given no opportunity to the appellant for their inspection. It seems to us that the appeal court was right in this view and no case has been made out even prima facie for action under this part of section 398 of the Act. Appeal dismissed.