Case Law Details
Pramerica ASPF Vs Metro Corp Infrastructure Ltd (NCLAT Chennai)
NCLAT Chennai held that if there is any breach of the Terms of Settlement, it cannot be construed as an issue which would fall within the ambit of the definition of `Oppression and Mismanagement’ as defined under the Companies Act, 1956.
Facts- The ‘Petitioner’/’Appellant’ before the Company Law Board, Chennai under Sections 397, 398, 399, 402, 406 & 542 of the Companies Act, 1956 seeking to declare the Meetings of the Board of Directors of the first Respondent Company/M/s. MetroCorp Infrastructure Ltd., held on 02.11.2009, 10.11.2009 & 25.10.2010 as `null & void’ and to declare the `Mortgage Deeds’ dated 10.11.2009, 19.11.2009, 02.11.2010 signed pursuant to the aforesaid Meetings as `null & void’ and ordered for cancellation of the said Deeds of Mortgage.
Conclusion- The scope and objective of Sections 397, 398 & 399 of the Act defining `Oppression and Mismanagement’ does not entail the `Tribunal’ to adjudicate on the issues arising from the facts of the attendant case on hand. Even if there is any breach of the Terms of Settlement, it cannot be construed as an issue which would fall within the ambit of the definition of `Oppression and Mismanagement’ as defined under the ‘Act’.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
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