TMI Blog1989 (12) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... antee under the Act and was registered in the year 1942. The primary object of the company was to acquire, construct, maintain buildings and shops for public use and benefit. The petitioner was duly elected as a member of the managing committee which assumed office on January 3, 1978. The company held annual general meetings till the year 1981 as provided in the memorandum and articles of association of the company. Every year members of the managing committee were appointed. After August 4, 1985, no meeting or annual general meeting was held for electing members of the managing committee. Respondent No. 2 is in control of the affairs of the company. He donated the following sums to the institutions: Rs. "( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The petitioner filed a replication but could not controvert the material averments made in the written statement. From the pleadings of the parties, the following issues were framed: 1.Whether the petition is maintainable by the petitioner? 2.Whether the affairs of the company are being conducted in a manner prejudicial to the public interest or in a manner oppressive to members of the company or prejudicial to the interest of the company itself? 3.Relief. Issue No. 1 ought to have been treated as a preliminary issue. However, since the parties have led evidence under issue No. 2, I am disposing of both the issues. Issue No. 7. Sub-section (1) of section 399 of the Act deals with the right of the members of a company to appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue No. 2 and I am dealing with issue No. 2 also. Issue No. 2. In support of this issue, the petitioner examined PW-1, Surinder Pal, and himself appearing as PW-2. PW-1 practically reiterated the allegations made in the petition but, in the cross-examination, he had to admit that all the facts stated by him in examination-in-chief were told to him by the petitioner. The witness also admitted that, in the annual general meeting, the accounts of the company are passed and the members of the managing committee were elected. He also admitted that the buildings of D.A.V. College and School at Malout were constructed by the company and that the company is competent to earmark funds for education. The petitioner, who appeared as PW-2, reiterat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m and articles of association. The petitioners failed to substantiate the allegations made in the petition. On the contrary, the evidence of RW-1 in unequivocal terms proved that the affairs of the company are properly managed, the account books are duly audited by the chartered accountant and all the expenditure was approved in the annual general meeting and in the annual general meeting, members of the managing committee were elected every year. This petition appears to have been filed for some ulterior purpose. It is lacking in good faith and is not maintainable at the instance of the petitioner. For the reasons aforesaid, the petition is dismissed with costs. Counsel fee assessed at Rs. 1,000. - - TaxTMI - TMITax - Corporate Law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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