A P JAIN Vs. FARIDABAD METAL UDYOG

JUDGEMENT

(1.) This appeal is preferred against the order dated 27th July 1998 passed by the Company Law Board (in short the 'CLB') in CP No. 5/1997. Vide the impugned order, the company petition of the appellants herein has been dismissed sustaining the preliminary submissions of the respondent to the maintainability of the petition and thus, without going into the merits thereof. The the CLB, agreed with the twin submission of the respondents, namely, that by filing the said petition the petitioner indulged in forum shopping and the petition suffered from abnormal delay as well. For appreciating the order of the CLB it would be necessary to have some background of the litigation between the parties.

(2.) The appellant, Sh. A.P. Jain, holds 15% shares of M/s. Faridabad Metal Udyog Pvt. Ltd. (hereinafter referred to as the 'Company'). His family members also hold certain shares and the total shareholding of his family, inclusive of his shareholding, is 46.56%.

(3.) The appellant had, in the year 1990, filed a petition under section 397/398 of the Companies Act (for short the 'Act') alleging oppression and mismanagement on the part of the respondents. That petition was filed in this Court as at that time jurisdiction to deal with such petitions was with the High Courts. With effect from 31st May 1991, the Act was amended conferring jurisdiction to entertain such petitions on the CLB. However, petitions already filed and pending with the High Courts were to be continued and disposed of by the High Courts. Therefore, this Court retained the jurisdiction over the petition filed by the petitioner in the year 1999, which was pending as on 31st May 1990. While this petition was still pending, the appellant moved an application therein for withdrawal of that petition. Granting this liberty, petition was dismissed as withdrawn.