Company Law - There can be disputes between majority group and minority shareholders in any Company and these disputes come very frequently in closely held companies or Private Limited Companies. The Companies Act, 1956 provides certain rights to the shareholders ...
Read MoreCompany Law - In any litigation, the Court or the authority adjudicating the matter can pass interim orders and the matter will get finally disposed of. Once the matter is dispose of finally, there ends the litigation and the final order can be executed. If there is a provision for review having limited scope, the court can review its order. This is th...
Read MoreCompany Law - Section 397/398 of the Companies Act, 1956 provides a relief to the minority against the majority if the majority indulges in the oppressive acts and the acts of mismanagement. It is not that every shareholder can avail the remedy available under section 397/398 of Companies Act, 1956 and section 399 specifically deals with the issue as q...
Read MoreCompany Law - The study of various judgments of High Court and Supreme Court under section 397/398 of Companies Act, 1956 speak volumes about the complications in dealing with the cases of ‘oppression and mismanagement’ under section 397/398 of Companies Act, 1956. There were many judgments under section 397/398 explaining the powers of Company Law...
Read MoreCompany Law - I have been continuously focusing at the complications in the corporate world and especially about the protection to the shareholders in a Company. I have seen cases where the majority does everything in order to deny the rightful share of the minority shareholders or the group; or to make the company a shell company. ...
Read MoreNagesh Kumar & Anr. Vs Nagesh Hosiery Exports Ltd. & Ors. (Delhi High Court) - It was observed by the CLB that if the Appellants failed to cooperate with NHEL for the determination of the value of the occupied premises, including land, plant and machinery and do not accept the fair value of the assets determined, the petition shall be deemed to have been dismissed. The impugne...
Read MoreDaksha Infra Build (P.) Ltd. Vs Rochees Resorts (India) (P.) Ltd. (Delhi, Company Law Board) - The case of Chatterjee Petrochem (I) (P.) Ltd. v. Haldia Petrochemicals Ltd. [2011] 110 SCL 107 is clearly distinguishable as in that case when the company was in dire need of funds the Chatterjee Group had failed to keep its promise of providing funds as it obtained a loan raising the debt equity ...
Read MoreAruna Hotels Ltd. Vs Kamal Babbar (Chennai, Company Law Board) - To file a petition u/s 397, 398 of the Act, one has to fulfil the requirement as contemplated under the above provision of law. Unless and until the above criterion is fulfilled, the petition is not maintainable. The persons who can qualify to file the petition are (i) in case the company is having ...
Read MoreKailash Nath Roy Vs Bengal Bonded Warehouse Association (Kolkata Company Law Board) - Under section 399 of the Act, statute has made it clear that 10 per cent shareholding is requisite qualification to invoke jurisdiction under sections 397 and 398 of the Act. If the joint shareholding of first petitioner has become half, then certainly this petition is short of the requisite qualifi...
Read MoreK. Venkatachalam Vs Premier Roller Floor Mills Ltd. (Chennai Company Law Board) - The issues regarding genuineness of the sale deed, undervaluation, etc. are beyond the purview of instant CP, since a consideration of oppression and mismanagement arises only if the petitioners are found to be shareholders of the company. That issue being held against them the other issues pleaded ...
Read MoreNagesh Kumar & Anr. Vs Nagesh Hosiery Exports Ltd. & Ors. (Delhi High Court) -
Daksha Infra Build (P.) Ltd. Vs Rochees Resorts (India) (P.) Ltd. (Delhi, Company Law Board) -
Aruna Hotels Ltd. Vs Kamal Babbar (Chennai, Company Law Board) -
Kailash Nath Roy Vs Bengal Bonded Warehouse Association (Kolkata Company Law Board) -
K. Venkatachalam Vs Premier Roller Floor Mills Ltd. (Chennai Company Law Board) -
Gharda Chemicals Ltd. Vs Jer Rutton Kavasmanek (Bombay High Court) -
Dr. Mangat Rai Goyal Vs Moraj Finanz Pvt. Ltd. (Bombay High Court) -
ABA Builders Ltd. Vs Smt. Anjula Nagpal (Calcutta High Court) -