AMALGAMATIONS LIMITED Vs. SHANKAR SUNDARAM

JUDGEMENT

(1.) THESE letters patent appeals arise out of the common order dated 3.6.2002 passed by the learned single Judge in CM. A. No. 2018 and 2036 of 2000. Inasmuch as the issues involved in all these appeals are one and the same and the parties to the appeals are also same, by consent of counsel for both sides, the appeals are taken up together and are disposed of by this common judgment.

(2.) ALL these proceedings are concerned with the affairs of management of a Company called Amalgamation Private Limited, which is the holding company of several other companies, which are all either 100% owned and controlled by the holding company and some of the subsidiary companies themselves are holding companies, which are sought to be arrayed as parties in the Company Petition by the respondent by taking out an company application before the Company Law Board for necessary action under Section 397 of the Companies Act, hereinafter referred to as the Act.

(3.) THE Company Law Board allowed the Company Application No. 48 of 2000 by ordering to delete the names of the subsidiary companies from the array of parties, however rejected the prayer for dismissing the main Company petition on the preliminary objection itself. The Company Law Board further directed that the holding company shall give reply on all the allegations in the company petition, including those concerning subsidiary companies. The Company Law Board also gave liberty to the respondent to seek investigation into the affairs of the subsidiary company by filing separate petition under Section 214(2) read with Section 235 of the Companies Act.