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2018 (12) TMI 1123 - HC - Companies LawOppression and mismanagement - Allotment of share capital, alteration and rectification of the register of members wrongfully - Permanent injunction - allotment of shares in favour of the Defendant Nos.5 to 9 as null and void - whether the issues of further share capital, was contrary to the scheme provided under Section 62 of the 2013 Act - Jurisdiction of NCLT - Held that:- Such issuance of share capital to the detriment of an existing member is prejudicial to the said member, as also the interest of the company. Moreover, under Section 242(2) of the 2013 Act, restrictions can be imposed on the transfer or allotment of shares and passing of such orders are within the domain of the NCLT. It is clear in the facts of this case that involving issues relating to allotment of share capital, alteration and rectification of the register of members, the NCLT is `empowered to decide’ –leading to the conclusion that this Court has no jurisdiction. The Legislative scheme having been changed, with the amendments which have brought about and for all the reasons stated herein above, this Court holds that the present suit is liable to be rejected leaving the Plaintiff to avail its remedies, in accordance with law before the NCLT. Yet another reason for holding that this Court would have no jurisdiction is fact that the matter is also pending before the CLB (now transferred to the NCLT at the instance of one of the directors). The interim order passed by this Court has been in operation since 12th March, 2014. The said interim order would, continue for a further period of 4 weeks in order to enable the Plaintiff to approach the NCLT. The plaint is rejected with liberty as provided above
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