EASTERN CONNEXION Vs. STATE

JUDGEMENT

(1.) PRESENT appeal has been filed under Section 10 -F of the Companies Act, 1956 (for short ,,Act) challenging the order dated 24th August, 2009 passed by the Principal Bench, Company Law Board (for short ,,CLB) whereby the respondent was directed to pay Rs. 3,00,000/ - to the appellant on or before 15th September, 2009 as "fair valuation for the 1000 shares held by the appellant". On receipt of the aforesaid consideration, the appellant was directed to transfer to the respondent her entire shareholding in the respondent company and the register of the members of the company was to be rectified.

(2.) THE relevant portion of the impugned order is reproduced hereinbelow: -

(3.) MS . Rajkotia further submits that the basis of the valuation should have been the Balance Sheet as on 31st March, 2005 and not 31st March, 2008. She states that the respondent with an intent to reduce the share valuation, deliberately under -estimated the assets and over -estimated the losses in the Balance Sheets that were finalized between the years 2005 and 2008. In this connection, she relies upon the Profit and Loss Account and the Balance Sheet for the year ended 31st March, 2006 at pages 167 and 168 of the paper book as well as the investment schedule annexed to the aforesaid balance sheet at page 172.