MOHINI M ASSOMULL Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS writ petition has been filed assailing an order dated 9th August, 2006 passed on Company Petition No. 50/2006 by the Bench of the Company Law board in exercise of jurisdiction under section 408 of the Companies Act, 1956. The grievance of the petitioner is that despite being shareholder in the company-respondent no. 2 herein, the petitioners were denied opportunity of hearing and hence the order is liable to be set aside on grounds of violation principles of natural justice.

(2.) THE writ petition has been opposed on several grounds on merits. However a preliminary objection with regard to the maintainability of the writ petition on the ground of availability of an alternative remedy of statutory appeal under Section 10f of the Companies Act, 1956 has been pressed. Counsels have been accordingly heard on this objection alone.

(3.) I find that there is no dispute that the statute provides a remedy of an appeal under Section 10f of the Companies Act, 1956 against an order of the company Law Board. Such appeal would have been available to the petitioner on ground of failure to comply with the law and the denial of the hearing to which the petitioner has claimed entitlement under Section 408.