MANAKTALA CHEMICALS PVT. LTD Vs. PAWAN MANAKTALA

JUDGEMENT

(1.) This is an appeal filed under Section 10F of the Companies Act, 1956, impugning the order passed by the Company Law Board on 17.05.2013 clarified by the order dated 23.07.2013.

(2.) The appeal has been filed in the following circumstances. The respondents in the appeal, who may be referred to as the Pawan Group, held a minority shareholding in the appellant-company, the majority shares being held by the Vipin Group. There was only a slender margin in the percentage of holding. It is not necessary to go into much detail about the circumstances in which the Pawan Group filed company petition No.43(ND)/2013 before the CLB; suffice to note that the petition was filed under Sections 397-398 of the Companies Act alleging oppression and mis-management against the Vipin Group. A property had been acquired by the company in Noida at D-11, Sector-18. This property was sold in November, 2011. The sale proceeds were used to acquire some other properties. The balance amount was credited to the fixed deposit account of R-1, Mr. Pawan Manaktala, belonging to Pawan Group. This was as on 08.04.2013. Some withdrawals had already been made and there was a balance of Rs. 13.68 crores in the fixed deposit account as on 04.04.2013. On the date of the filing of the company petition, the balance available in the fixed deposit account in the name of R-1 was Rs. 13.68 crores.

(3.) An application in Company Application No.186/2013 was filed by the Pawan Group before the CLB in the main company petition with an interim prayer as follows: -