MUKUL HARKISONDASS DALAL Vs. JAYESH RAMNIKLAL DOSHI

JUDGEMENT

(1.) THIS is an appeal preferred by original defendant No. 2 to challenge the legality of order dated february 6, 1992, passed by the learned single judge on Notice of Motion No. 1802 of 1991 restraining the appellant by an order of injunction from functioning and holding himself out to be the managing director or director of defendant No. 1 - company. The trial judge also issued an injunction against the company from permitting defendant No. 2 to act as managing director or director and defendant No. 2 was further restrained from receiving any salary, perquisites, benefits or privileges from the company as managing director or director. The decision of the trial judge is reported in Jayesh Ramniklal Doshi v. Carbon Corporation Ltd. [1992] MLJ 1316 ; [1993] 76 Comp Cas 748 (Bom ). We are unable to agree with the view taken by the learned judge and the impugned order is required to be set aside.

(2.) ADVANCE Paints Private Limited instituted Summary Suit No. 2409 of 1985 against the appellant for recovery of Rs. 12,32,397. 50 together with interest on the principal amount of Rs. 8,18,785. 75 at the rate of 18 per cent. per annum. The decree was passed against the appellant on may 12, 1988. In realisation of the decretal amount, Advance Paints Private Limited filed insolvency Petition No. 60 of 1988 against the appellant on April 5, 1989. On April 20, 1989, the insolvency Court passed an order of adjudication but directed that the operation of the order should be deferred till May 5, 1989. The appellant instituted Appeal No. 526 of 1989 before the division Bench of this court on April 26, 1989. The operation of the order of adjudication was stayed pending admission of the appeal. The appeal was dismissed on June 7, 1989, but the operation of the order was stayed up to July 5, 1989, to enable the appellant to approach the supreme Court. The appellant filed Special Leave Petition No. 7938 of 1989, before the supreme Court on June 28, 1989, and thereupon, the operation of the order was further stayed by this court up to July 11, 1989. The Supreme Court continued the grant of stay order passed by this court. The Supreme Court disposed of the special leave petition on February 5, 1990, by passing the following order :

(3.) IT is not in dispute that the appellant complied with the order and paid the amount with interest within the time specified to Advance Paints Private Limited.