SANJAY SETHI Vs. DEEPAK SETHI

JUDGEMENT

(1.) I.A. No. 22335 of 2012 (u/O VII R-11 and u/O I R-9 CPC by D-1) with IA 17003 of 2013

(2.) It is stated that Plaintiff No. 1 and Defendant No. 1 were carrying on business of manufacturing, installation and commissioning services of equipment for LPG Bottling Plants, testing equipment and various RVI jobs through private limited companies, viz., (a) Laycock Engineers Pvt. Ltd. ['LEPL'] and (b) International Corporate Signs Pvt. Ltd. ['ICSPL']. It is stated that Plaintiff No. 1 along with Defendant No. 1 were on the Board of Directors ('BoDs') of both the above companies.

(3.) Some time towards the end of 2009, differences arose between the brothers and it was decided that they would part ways in an amicable manner. According to the Plaintiffs, it was agreed that the Defendant No. 2 would resign as a director of LEPL and ICSPL and also sell/transfer shares in the said companies. The Plaintiffs claim that an oral agreement was arrived at after several rounds of discussions and negotiations, including discussions held in the presence of late Mr. S.K. Pruthi and Mr. Sarabjeet Sharma. A Memorandum of Understanding ('MoU') was executed between Plaintiff No. 1 and Defendant No. 1 on 6th January 2010. Inter alia, it was agreed that: