MAKHAN LAL JAIN Vs. AMRIT BANASPATI CO LTD

JUDGEMENT

(1.) This is an application under Sections 153C and 153D recently inserted in the Companies Act (7 of 1913) by the amending Act (52 of 1951). The petitioners are two share-holders in the Amrit Banaspati Company Limited, Ghaziabad, here-after described, for brevity's sake, as the company. They have made various allegations of mismanagement and foul play against the company, its Directors and Managing Agents. But it is unnecessary to go into those allegations at this stage because a preliminary objection has been taken by the learned counsel for the opposite parties and the petition fails, in my opinion, on that preliminary ground alone.

(2.) It is contended on behalf of the opposite parties that the requirements of Sub-section (3) of Section 153C have not been complied with. The relevant portion of this sub-section reads as follows :

(3.) It is conceded by the petitioners that they do not hold one-tenth of the issued share capital of the company and, therefore, they do not fall under Clause (ii). They maintain that their case falls under the first part of Clause (i) inasmuch as they allege to have obtained the consent in writing of more than hundred share-holders. They do not rely on the second part of Clause (i).