VIVEK BANSAL Vs. R M ISPAT PRIVATE LTD

JUDGEMENT

(1.) THIS appeal has assailed the order of the Company Law Board (CLB) dated 09.06.2009 wherein the petition filed by the petitioner (Vivek Bansal group and hereinafter referred to as the 'petitioner') under Sections 397 & 398 of the Companies Act whereby directions qua the main reliefs prayed for by the petitioner had been deferred in view of the defence set up by the respondent (Anil Bansal group and hereinafter referred to as the 'respondent No. 2') that a family settlement dated 21.02.2006 had been entered into between the parties pursuant to which the petitioner group had given up all rights in the company in dispute (R.M. Ispat Pvt. Ltd and hereinafter referred to as the 'company') and this family settlement admittedly being sub-judice and the subject matter of an appeal pending before the Allahabad High Court; the Company Law Board did not think it fit to pass any order on the reliefs claimed by the petitioner.

(2.) RECORD shows that the company (M/s R.M. Ispat Pvt. Ltd.) was a company incorporated under the provisions of the Companies Act, 1956 having its registered office at 4973/21, Phatak Badal Beg, Hauz Qazi, Delhi. The authorized share capital of the company was Rs.75,00,000/- made up of 7,50,000 equity shares Rs. 10/- each; the issued subscribed and paid up capital of the company was Rs. 71,06,000/- made up of 7,10,600 equity shares of Rs.10/- each all fully paid up. The object of the company was to set up rolling and rerolling mill plants both cold and hot and also the business of manufacturer/dealers/traders of all varieties of steel, low carbon mild and plain carbon.

(3.) IN the reply filed to the said petition (by respondent No. 2), at the outset, the defence of the respondent was that the parties had arrived at a family settlement which was incorporated in a Memorandum of a Family Settlement dated 21.02.2006. Attention has been drawn to the aforenoted document. This document has been allegedly entered into between respondent No. 2 and the father of the petitioner namely Arjun Das Bansal. In terms of this settlement, the shares of respondent No. 2 and his family in Kunal Pipes (India) Pvt. Ltd. stood transferred in the name of Arjun Das Bansal and his family and the factory at Durg would belong exclusively to him for which Mr.Arjun Das Bansal and his family would pay Rs. 40 lacs to respondent No. 2; the factory in Ghaziabad in the name of R.M. Ispat Pvt. Ltd. shall belong exclusively to respondent No. 2 and his brother Sunil Bansal. Attention has also been drawn to the Award dated 26.06.2006 which had been pronounced by the sole Arbitrator Suresh Chand Garg which was an adjudication of this family settlement dated 21.02.2006; in terms of this Award, Arjun Das Bansal and his family members would transfer their shares in the Company M/s R.M.Steel Pvt. Ltd) in the name of Mr.Anil Kumar Bansal or his nominated person.