CHENNABASAPPA KOTHAMBARI Vs. MULTIPLAST INDUSTRIES KARNATAKA PVT LTD

JUDGEMENT

(1.) This petition in presented by one Chennabasappa Kothambari purporting to be a petition under s. 433(e) and (f) read with ss. 397 and 398 of the Companies Act, 1956 (hereinafter referred to as "the Act"). The prayers in the petition are for an over winding up the first respondent-Multiplast Industries (Karnataka) P. Ltd., Hospet; for a declaration that the notice dated May 25, 1982, issued by the company, a copy of which is at Ex. Q to the petition to be illegal, void and not enforceable against the petitioner and pass an order directing the respondent-company to forbear from exercising its lien on the fully paid-up shares held by the petitioner hand from selling the said shares. In the alternative, he has prayed that the respondent-company and its directors be directed to transfer the share held by the petitioner for a fair present market value and pay the sale proceeds to the petitioner forthwith.

(2.) To summarise the averments in the petition, the following few facts may be stated :

(3.) The petitioner and respondents Nos. 2 to 4 before the formation of the first respondent-company were partners doing the same business in the same name and style of Multiplast Industries Corporation. That partnership headed for some trouble and suit was filed for dissolution of the partnership by the petitioner. But, while that suit was pending, the matter was settled out of court and that suit was disposed of in terms of a settlement reached by the parties thereto. It is thereafter that the present first respondent-company was incorporated.