section 397

Trial Courts Can’t Add Accused Under Section 319 CrPC on Vague Grounds: MP HC

Corporate Law - In a landmark judgment, MP HC rules trial courts cannot accuse under Section 319 CrPC without clear evidence. Detailed analysis of the case and its implications....

CLB’s power to set-aside Agreements/Contracts under section 397/398?

Corporate 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 ...

CLB's power and responsibility under section 402 of Companies Act, 1956?

Corporate 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...

How to look at the issue of ‘membership’ under section 399 of Companies Act, 1956?

Corporate 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...

How to ascertain 'oppression' under section 397 of Companies Act, 1956?

Corporate 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...

Sorry No Post Found

Initiation of prosecution proceedings u/s 276CC in absence of any demand is unsustainable-in-law

Gunwant Singh Saluja Vs State of Jharkhand (Jharkhand High Court) - Jharkhand High Court held that initiation of prosecution proceedings under section 276CC of the Income Tax Act in absence of any demand, as demand adjusted against refund, is bad-in-law and liable to be set aside....

Deciding validity or otherwise of Gift Deed is outside the jurisdiction of NCLT

Satori Global Limited Vs Shailja Krishna (NCLAT Delhi) - NCLAT Delhi held that the NCLT has no jurisdiction to decide the validity or otherwise of the `Gift Deed’ more so when `fraud’ and `coercion’ is alleged....

Arbitrary valuation of shares not justified if shareholders succeeded in demonstrating oppression

Nagesh 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...

To file petition U/s. 397/398 petitioner must be shareholder on the date of petition

K. 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 ...

CLB can allow amendment to petition filed u/s. 397 & 398, if it isn’t prejudicial to parties

Gharda Chemicals Ltd. Vs Jer Rutton Kavasmanek (Bombay High Court) - CLB has rendered a finding that the application for amendment was allowed for determination of the issues between the parties and for the purpose of framing issues for avoiding multiplicity of litigations. ...

Sorry No Post Found

Recent Posts in "section 397"

Trial Courts Can’t Add Accused Under Section 319 CrPC on Vague Grounds: MP HC

In a landmark judgment, MP HC rules trial courts cannot accuse under Section 319 CrPC without clear evidence. Detailed analysis of the case and its implications....

Posted Under: Corporate Law |

Initiation of prosecution proceedings u/s 276CC in absence of any demand is unsustainable-in-law

Gunwant Singh Saluja Vs State of Jharkhand (Jharkhand High Court)

Jharkhand High Court held that initiation of prosecution proceedings under section 276CC of the Income Tax Act in absence of any demand, as demand adjusted against refund, is bad-in-law and liable to be set aside....

Deciding validity or otherwise of Gift Deed is outside the jurisdiction of NCLT

Satori Global Limited Vs Shailja Krishna (NCLAT Delhi)

NCLAT Delhi held that the NCLT has no jurisdiction to decide the validity or otherwise of the `Gift Deed’ more so when `fraud’ and `coercion’ is alleged....

Posted Under: Corporate Law | |

Arbitrary valuation of shares not justified if shareholders succeeded in demonstrating oppression

Nagesh 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 impugned order thus makes it impossible for the...

To file petition U/s. 397/398 petitioner must be shareholder on the date of petition

K. 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 in the CP do not arise. The petitioners ...

CLB can allow amendment to petition filed u/s. 397 & 398, if it isn’t prejudicial to parties

Gharda Chemicals Ltd. Vs Jer Rutton Kavasmanek (Bombay High Court)

CLB has rendered a finding that the application for amendment was allowed for determination of the issues between the parties and for the purpose of framing issues for avoiding multiplicity of litigations. ...

Bona fide disputed debt cannot be adjudicated in winding up proceedings

Dr. Mangat Rai Goyal Vs Moraj Finanz Pvt. Ltd. (Bombay High Court)

The appellant may have a very good case on merits and would possibly be able to establish in an appropriate proceeding that the respondent have acted in a fraudulent manner and defrauded him to Rs. 2 crore. However, in proceedings for winding up the company, the Court cannot adjudicate upon a bona fide disputed debt. It is well settled ...

Share qualification required to maintain petition u/s. 397 & 398

ABA Builders Ltd. Vs Smt. Anjula Nagpal (Calcutta High Court)

Unfortunately, this court has failed to engage the respondents' attention on such aspect of the matter despite several reminders in course of the hearing. Instead, the respondents have veered off course to emphasise on single-line orders of adjournment to impress that the settlement had never been worked out. But the settlement or the ade...

Issue of shares to reduce shareholding of petitioner shareholder-company after removing its directors without any notice is per se oppressive

Daksha 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 ratio of the company. These circumstance...

HC may sanction non tax neutral demerger

In re Indo Rama Textile Ltd. (Delhi High Court)

The contention urged by the Applicant that the Scheme of Demerger must necessarily comply with Section 2(19AA) which is meant for availing tax concession cannot be read as a mandatory requirement for all schemes of amalgamation / arrangement/de-merger under Sections 391/392/394 of 1956 Act . The said provision cannot be read and interpret...

Browse All Categories

CA, CS, CMA (6,888)
Company Law (10,091)
Corporate Law (13,578)
Custom Duty (10,837)
DGFT (5,163)
Excise Duty (5,622)
Fema / RBI (5,776)
Finance (6,500)
Income Tax (49,872)
SEBI (5,345)
Service Tax (4,895)