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2014 (6) TMI 846 - COMPANY LAW BOARD NEW DELHIOppression and mismanagement of Company - Held that:- Mehra family is controlling the affairs of Respondent No. 1 company and the bank accounts have been opened in the name of the Respondent company after obtaining necessary approval of the Board of Directors in the interest of the company. It is true that the management of the company is empowered to open as many bank accounts in the name of the company as is considered expedient in the interest of the business of the company. However, it is also relevant to emphasize that the said bank accounts ought not to be used for diversion of funds of the company. On one side, the Petitioners/Applicants Advocate has alleged the diversion of funds of the Respondent company. On the other hand, the Respondent Advocate has controverted that there is no case of siphoning of funds of the company. Under these facts and circumstances, I am of the considered view that the Respondent company be allowed to continue the bank accounts in the interest of the company and the Petitioners be given liberty to look into the receipts and payments of money in the bank accounts so as to ensure that the funds are utilised in the interest of the company. - Decided partly in favour of Petitioners.
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