Mookada Moosa Mujeeb Rahiman Vs Saw Mill Owners Service Enterprises Limited (NCLT Kochi)
In, the National Company Law Tribunal (NCLT), Kochi Bench, dismissed a company petition filed under Sections 98, 169, 241 and 242 of the Companies Act, 2013 challenging the removal of the petitioner and six other directors from the board of a public limited company through an Extraordinary General Meeting (EGM). The petitioner, a shareholder holding 17,566 shares and appointed as Managing Director for five years from September 2019, sought declarations that the EGM conducted on 03.03.2020 and the resolutions passed therein were illegal, oppressive, and contrary to the Articles of Association and provisions of the Companies Act.
The petitioner contended that certain shareholders had improperly requisitioned the EGM to remove the existing management and replace them with their own nominees. According to the petition, the board had rejected the requisition notices on the ground that the proposed directors would not inspire confidence and that the move was intended to allow a few families to control the company. The petitioner also alleged that the respondents subsequently broke open the company office, filed statutory forms before the Registrar of Companies (ROC), altered the management structure, and appointed a new Managing Director despite pending civil proceedings before the Munsiff Court.
