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TMI Blog2020 (8) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Union of India moved a Petition under Section 401/397/398 r/w Section 408 of the Companies Act, 1956 (now Section 241(2) r/w Section 242 of the Companies Act, 2013). It also sought relief under Section 388B of the Companies Act, 1956 for appointment of the Government Nominated Directors and the control of the affairs and management of the Company Megacity Bangalore Developers & Builders Limited (MBDBL). 2. The National Company Law Tribunal (hereinafter referred to as the 'Tribunal') by impugned order dated 14th March, 2019 came to a considered opinion that Union of India made out a case so as to interfere in the affairs of the Company with suitable orders so as to protect the property of the Company; to protect the interest of stake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies Act, 2013 r/w Section 6 of the General Clauses Act, 1897, is that once the Companies Act, 1956 stood repealed, the Tribunal cannot grant relief under a provision, which stood repealed. 6. It was further submitted that the Tribunal failed to give any reason or finding with respect to specific roles attributed to the Appellant Nos.1-4 to hold that they are not fit to hold office of Director or any other office. 7. Further, according to the Appellants, in absence of shareholders' complaint, the Tribunal cannot accept the Respondent No.1's report overlooking the fact that the Company Petition was filed on the basis of conjecture and suspicion. It was further submitted that the decision of the Hon'ble High Court of Karnataka at Bengaluru i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 6,00,000/- and were only seven shareholders mainly Shri C.P. Yogeshwara, MD and his family members. Total Company Appeal (AT) No. 111 of 2019 Page 5 of 7 approx.. 9300 persons enrolled themselves as member, but out of these approx. 9300 members, only 3100 members paid full amount for the plot in the said township and the remaining 6200 members paid only 2-40 installments. The complaints were received against the Company alleging serious financial frauds committed by it, which was found to be correct in the inspection of the Company when made. (iv) After making investigation of the account and mismanagement, violations, illegalities, frauds, inconsistencies and the affairs are conducted adverse to the interests of its creditors, inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company was not filing its statutory returns under the existing management. 10. Section 465 of the Companies Act, 2013 relates to 'Repeal of certain enactments and savings' including the Companies Act, 1956. The Central Government is also empowered in sub-Section (1) of Section 434 for transfer of matters, proceedings including proceedings before the Company Law Board were transferred to the Tribunal. 11. The Central Government is empowered under Section 241(2) of the Companies Act, 2013 to file application in cases, if it is of the opinion that the affairs of the Company are being conducted in a manner prejudicial to public interest. The Tribunal in terms of Section 242 of the Companies Act, 2013, if of the opinion, that the Company's af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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