RAMESH PREMCHAND SHAH Vs. ENGINEERS ENTERPRISES PVT LTD

JUDGEMENT

(1.) Petitioners have filed this petition under sections 397 and 398 of the Companies Act, 1956 (hereinafter referred to as "the Act"), with an alternative prayer that the company may be ordered to be wound up by the under the directions of this court.

(2.) Respondent No. 1, Engineers' Enterprises Pvt. Ltd. (hereinafter referred to as "the company"), is a private limited company and its issued, subscribed and paid-up capital consists of Rs. 2,04,000 divided into 2,040 ordinary (equity) fully paid-up shares of Rs. 100 each. The petitioners held 1,000 ordinary shares of Rs. 100 each, i.e., about 49.02% of the total paid-up shares capital of the company. Respondents Nos. 2 to 5 are the other shareholders of the company holding in all 1,040 ordinary shares of Rs. 100 each. Their holding comes to a little over 50% of the total paid up share capital of the company.

(3.) On March 20, 1969, this petition was admitted in respect of prayers except those relating to winding up, namely, prayers (g) and (j). At that state, the counsel for the petitioners stated that for the time being he was not pressing the petition in so far as it related to winding up and that the petition was kept pending for winding-up order. On August 10, 1970, counsel for the petitioners stated in the court that the petitioners did not press for reliefs under sections 397 and 398 of the Act and have decided to proceed with the petition as if it was a petition for winding up only. After that date, this petition came up on board for admission for almost nearly a dozen occasions but on most of the occasions, for one reason or the other, by consent of the parties, it was adjourned from time to time. To-day it has come up finally for admission so far as it relates to prayers for winding up.