BALDEVDAS R. RAHEJA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a petition by certain shareholders of the National Rayon Corporation Limited (respondent No. 7) for a writ of mandamus for withdrawing or cancelling the order dated June 25, 1973 made by the Company Law Board (respondent No. 2) appointing respondents Nos. 5 and 6 as Government Directors for one year from June 30, 1973 on the Board of Directors of respondent No. 7 company and for declaring the same to be void and inoperative. They have also asked for a further writ in the nature of certiorari for quashing the said impugned order and also for a declaration that certain directors mentioned in prayer (c) had been duly elected at the annual general meeting of respondent No. 7 company held on May 11, 1973 and that they were entitled to act as Directors of respondent No. 7 company.

(2.) THE short facts leading to this petition may be stated as follows:

(3.) IN order to forestall any attempt on the part of Kapadias to get the control of the management of the company (i.e. the seventh respondent) the Board of Directors, dominated by the Chinais, on the expiry of the Chinais Managing Agency by the end of 1969, attempted to move a resolution at the annual general meeting held in June 1969 for appointment of Jivanlal C. Chinai and his son, Rasiklal J. Chinai, as Managing Directors for a period of five years on remuneration of Rs. 15,000 per month plus one per cent, commission and various other perquisites. The said resolution was opposed by the Kapadias and was therefore not moved.