ECONO VALVES P LTD Vs. V L SRIDHARAN

JUDGEMENT

(1.) This civil revision petition has been filed praying that this Court may be pleased to call for the records connected with C.P. No. 81 of 2009, on the file of the Company Law Board, Chennai Bench, and strike off the same in exercise of the power, under Section 10F of the Companies Act, 1956, or to alternatively, direct the Company Law Board to consider the maintainability of C.P. No. 81 of 2009, within a specified period, before considering any other application or proceedings, in C.P. No. 81 of 2009.

(2.) It has been stated that M/s. Econo Valves P. Ltd. (hereinafter referred to as "the company") was incorporated in the year 1981 as a private limited company. The company had been engaged in the business of valve engineering. As such, it has a good reputation and goodwill in the market. The company was, previously, a family concern, with the respondents, along with some of their friends and relatives, as the shareholder of the company. As the respondents could not manage the company, financially, it was incurring heavy losses. Therefore, they had decided to give up the ownership and management of the company. Hence, the respondents had approached the appellants.

(3.) It has been further stated that the second and the third appellants expressed their interest in acquiring 100 per cent, stake in the company. Accordingly, they had entered into a shareholders agreement, for the purchase of the 100 per cent, shares of the company. The second and the third appellants had entered into a shareholders agreement, dated December 14, 2006 Accordingly, 76.64 per cent, of the equity stake, held by the respondents, had been transferred to the second and the third appellants. As a result of the transfer of the shares by the respondents to the second and the third appellants, the shareholding of the first respondent in the company had been reduced to 328 shares, which is 0.164 per cent, of the number of shares in the company. Thereafter, the second respondent is neither the director, nor a shareholder of the company.