VENTUREAST PROACTIVE FUND LLC; VENTUREAST SEDCO PROACTIVE FUND LLC; VENTUREAST FUND ADVISORS INDIA PRIVATE LIMITED; VENTUREAST TRUSTEE COMPANY PRIVATE LIMITED Vs. C MOHAN RAM

JUDGEMENT

(1.) The appeal is directed against the impugned order of the learned Single Judge dated 03.08.2015 dismissing the application filed by the appellants under Section 9 (5) of the Presidency Towns Insolvency Act, III of 1909 (hereinafter referred to as 'the said Act'), as not maintainable.

(2.) At the inception, we may state that we would have sympathy for the appellants because their investment is stuck, but the remedy they have chosen is certainly not what is available to the appellants and we, thus, fully agree with the conclusion of the learned Single Judge.

(3.) The controversy arises from the investments made by the appellants in equity and compulsorily convertible cumulative participating preference shares and the allegation that the amounts have been siphoned off by the respondent resulting in C.P.No.32 of 2010 being filed before the Company Law Board (CLB), Chennai, making the prayer of conducting a Special Audit by an independent Chartered Accountant and formulate a scheme for the exit of the appellants as per a price to be fixed by the CLB. This petition, however, did not lead to its natural conclusion, but the parties settled their disputes mutually by a Compromise Deed, which they then sought to file before the CLB. The nature of compromise being quite different, the Company Law Board merely recorded that the mutually agreed out of Court settlement was taken on record to form a part of the order and disposed of the petition.