T. KANNAN Vs. SHAPRE INFOTECH INDIA LTD.

JUDGEMENT

(1.) This Company Petition is filed under Section 237(a)(ii) of the Companies Act, 1956 read with Rule 11(9) of the Companies (Court) Rules, 1959 to declare that the affairs of the first respondent company ought to be investigated by Inspector or Inspectors appointed by the Central Government and to further direct the Central Government to appoint as many Inspectors as required to investigate into the affairs of the first respondent company and submit a report thereof.

(2.) 1. The facts in a nutshell are as under: The petitioners are shareholders of the first respondent/company, holding 1,66,666 shares. The petitioners had subscribed for the said shares based on the assurance given by the first respondent/company that the petitioners would have good returns on their shares and that the shares would also be listed on other stock exchanges, apart from Madras, Bangalore and Hyderabad Stock Exchanges.

(3.) 1. In the counter affidavit filed by the respondents, it is averred as under: It is stated that the second respondent is a non executive director of the first respondent/company. It is stated that all the documents are available for inspection at the office of the Registrar of Companies and nothing has been concealed by the respondents. It is their case that the respondents have never persuaded the petitioners to invest in the equity shares of the first respondent/ company and any investment in shares is subject to the risk of earning in the business carried on by the company.