SATISH SHARMA Vs. VRINDA REALTORS LTD

JUDGEMENT

(1.) The present appeal has been filed by the appellant, under Section 10F of the Companies Act, 1956, seeking setting aside of the order dated 07.06.2013 (hereinafter referred to as the "impugned order") passed by the Company Law Board. By the impugned order the Company Law Board has vacated the interim order passed on 01.08.2012 whereby the company was restrained from alienating the assets of the company.

(2.) The principal question in the present appeal is whether the Company Law Board could vacate the interim order suo moto without any application making such prayer being filed by the respondent.

(3.) The appellant was a Director in the respondent no.1 company and was holding 15,000 equity shares of Rs. 10/- each in respondent no.1 company. On 09.05.2012, the appellant is stated to have transferred his entire shareholding in the respondent no.1 company in favour of the respondent no.2 and is also stated to have tendered his resignation as a Director of the Company. The appellant is stated to have executed various documents and also signed an MOU thereby divesting all his interest in the respondent no.1 company. Respondent no. 3 is stated to have been co-opted as a Director on the Board of the respondent no. 1 company and the respondents have filed the requisite forms with the Registrar of Companies reflecting the change in the constitution of the Board of Directors. The MOU, resignation and the resolutions of the Board of Directors are disputed by the appellant, who claims that his signatures were obtained by coercion.