RAVI PRAKASH SINGH Vs. SUGAR LIMITED

JUDGEMENT

(1.) THE plaintiff, erstwhile director of defendant No. 1, has filed the present suit for declaration and permanent injunction seeking a decree whereby the removal of the plaintiff as director of defendant No. 1/company be restrained and it be declared that the plaintiff is a director of defendant No. 1 Company.

(2.) THE plaintiff claims to be a businessman and an industrialist and states that he was a co-promoter and an original investor in the shares of defendant No. 1/company.

(3.) DEFENDANT No. 1/company made an offer of public issue of equity shares vide prospectus dated 01.05.1992 in which the plaintiff is stated to be a part of the company's management. A part of the finances were obtained from UPSIDC, Kanpur. The plaint sets out the investments made by the various shareholders but it is not necessary to go into the details of the same as the scope of the suit in view of the relief claimed is limited. Suffice to say that apparently disputes arose between the plaintiff on the one hand and the management on the other. This resulted in a letter dated 11.06.1993 being issued to the plaintiff informing him that his nomination as Director by the co-promoter was being withdrawn and the plaintiff would cease to be a director with effect from 29.06.1993, the date on which Board Meeting of the Directors had to be held. It is the case of the plaintiff that such withdrawal of nomination is ultra vires and contrary to the provisions of Section 284 of the said Act read along with provisions of Sections 189 and 190. A resolution was passed thereafter on 29.06.1993 whereby the plaintiff was removed from the Board of Directors. Hence, the suit.