RATTAN CHAND JAIN Vs. UBEROI LIMITED

JUDGEMENT

(1.) The Uberoi Limited, an enterprise of Uberoi family, had total share-holding of 5000 shares of RS.IOO.00 each and the shares were exclusively held by Uberoi group till March 1972. In March, 1972, Uberoi group sold 74 per cent of the shares equal to 3695 shares to Jaggi group, one per cent shares equal to 53 shares were kept in the miscellaneous and Uberoi group retained 25 per cent shares equal to 1252 shares. In April 1979, the Uberoi group was bifurcated into two groups. It transferred 12 per cent shares equal to 600 shares to Taneja group, retaining the balance of 13 per cent shares to the remnant Uberoi group.

(2.) In May 1979 Jaggi group transferred 51 per cent shares equal to 2551 shares to Rattan Chand Jain for short 'Jain' and the Jaggi group was left with 23 per cent shares equal to 1144 shares. The Jaggi group then divided the shares between its two members: R.P.Jaggi group got 18 per cent shares equal to 900 shares and D.L.Jaggi group was left with 5 per cent shares equal to 244 shares.

(3.) In 1978 the Uberoi group filed CP 115 of 1978 under sections 397 and 398 of the Companies Act against Jaggi group on account of oppression and mismanagement. During the pendency of the petition, Taneja group had been created from amongst the share- holding of Uberoi group and was joined as a petitioner in the same Company petition. On purchase by Jain from Jaggi group of majority of shares, Jain was added as a respondent to the same Company petition. It may be noticed at the out set that the Company petition is still pending before the learned Company Judge.