M G DOSHIT Vs. RELIANCE PETROCHEMICALS LIMITED

JUDGEMENT

(1.) The applicant is a shareholder and member of the respondent Company and he has challenged the validity of the Annual General Meeting of the Company held at Surat on the ground that it is in violation of the provisions of Section 166 of the Companies Act 1956 and has prayed for a declaration of illegality and for declaring all the business transactions at the said meeting as null and void Section 166(2) of the Companies Act reads as under:

(2.) The petitioner submits that the Annual General Meeting of the Company must be held either at the registered office of the Company or at some other place within the city town or village in which the registered office of the Company is situated. The registered office of the Company is situated at Village Mora Post Bhatha Surat-Hajira Road District Surat Pin 394 510 Gujarat State. The Annual General Meeting in question was held in Surat city and not in Village Mora Post Bhatha where the registered office of the Company is situated.

(3.) On behalf of the respondent Company it is submitted that there is no breach of Section 166 of the Act. It is not the revenue limits or municipal limits which is required to be taken into consideration but the postal limits of the city are required to be considered and it is submitted that the Post Department has confirmed that Village Mora falls within the postal limits of Surat and reliance is placed on a Central Government Circular dated 16/02/1981 wherein it is clarified that a Company can hold its Annual Meeting at any place within the postal limits of the City where its registered office is situated if it is more convenient to its shareholders. That Circular is produced alongwith part of that Circular reads as follows: