KUMARANUNNI Vs. MATHRUBHUMI PRINTING AND PUBLISHING CO. LTD.

JUDGEMENT

(1.) THIS is a petition under Section 237(a)(ii) of the Companies Act. The petitioner is a member of a company, and he wants an order declaring that its affairs require investigation by an inspector appointed by the Central Govt. Before going into the facts of the case, it is necessary to examine under what circumstances such a declaration could be made.

(2.) SECTION 237 of the Act reads:

(3.) IT is not as if a member can make any allegation and the Central Govt. can order an investigation on being satisfied that it calls for a further probe. The nature of the allegations must have relevance to the matters enumerated in Clause (b). The question then is, is the situation different when the court has to decide under Clause (a) about the desirability of an investigation ?