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2015 (7) TMI 703 - Board - Companies LawCharges of oppression and mismanagement - Section 397-398 read with Sections 402 to 408 of the Companies Act, 1956 - Application for impleadment - Held that:- it is thus clear that the CLB is competent to implead a party as a Respondent in a petition filed under Section 397/398 of the Act, if it is satisfied that there is a sufficient cause for doing so. This provision, in my opinion, is akin to the provisions contained in Order I Rule 10(2) of the C.P.C. It is well settled proposition of law that a necessary party is one, without whom no order can be made effectually, a proper party In whose absence an effective order cannot be made and whose presence is necessary for a complete and final decision on the question involved in the proceeding. Rule 10 (2) of Order 1 of the CPC also indicates as to who is to be termed as a “necessary” or “proper party”. These provisions, inter alia, empower the Court to add the name of any person, namely (1) who ought to have been joined” and (2) “ whose presence before the court may be necessary in order to enable the court to effectually and completely adjudicate upon and settle all the issues involved in the matter. In light of the above stated proposition of law, I have examined the material available on record and the report of the ROC, Pune filed by it pursuant to the order passed by the CLB dated 18/12/2014. Taking into consideration that the EOGM whereat the applicants are allegedly removed as Directors of the Company is in dispute, I am of the opinion, that the applicants are the necessary parties and their presence is required for effective and complete adjudication of the Company Petition. I, therefore, allow the application for impleadment. The Petitioner is, therefore, directed to implead the Applicants as Respondents in the array of the parties within 3 days and also to carry out consequential amendments, if required. Let the amended copy of the Company Petition be served upon the Respondents including the newly added Respondents who may file their reply(s) before the date fixed. The Respondents may also file their additional reply(s), if any, before the date fixed.
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