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2019 (1) TMI 387 - AT - Companies LawOppression and mismanagement - transfer of shares approved but not updated in the Company's records - case of appellant is that the Diastar Inc. has initiated bankruptcy proceedings against itself and Respondent No.1 without initiating recovery proceedings has written off all its receivables from Diastar Inc. USA, and money has been siphoned, through Diastar Inc. - beneficial ownership of shares - Appellants argued that Respondent No.2 has misused the funds of the Company. Held that:- The Respondents have mismanaged the Company affairs, which is facing proceedings in SARFAESI, and there is also material to show that investigation is necessary relating to loss of revenue to the Company with allegations of siphoning of money by diverting the funds to Diastar Inc. and then put Diastar Inc. into bankruptcy proceedings and write off dues in this Company - The non-responsive attitude of the Respondents to the Appellants and shareholders also amounts to oppression of the Appellants. The Impugned Order is quashed and set aside - matter remitted back to the National Company Law Tribunal, Mumbai Bench - appeal allowed.
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