PRAKASH PRALHAD CHHABRIA Vs. VIJAY K. CHHABRIA

JUDGEMENT

(1.) These two Appeals from Order challenge an order passed by the Joint Civil Judge Senior Division at Pune on 10 May 2019. The impugned order was passed on an interlocutory application of Respondent No.1 to these appeals (original plaintiff). The plaintiff's suit was chiefly for a declaration that one Pralhad Chhabria Trust (hereinafter for short called "PC Trust"), through its trustees (the plaintiff being one of them), was the sole owner of 116922 shares of defendant no.4-one Orbit Electricals Pvt. Ltd. (hereinafter for short called "Orbit"). The shares represented approximately 80 per sent of ownership of Orbit, who in turn held 30.7 per cent shares of a group company known as Finolex Cables Ltd. and 18.8 per cent shares of another group company known as Finolex Industries Ltd. By the impugned order, Orbit was sought to be restrained from acting on the votes cast by the Appellant herein (original defendant no.1) on 100300 shares of Orbit held by him till the final disposal of the suit.

(2.) The short facts of the case leading to the filing of the present suit may be stated as follows :

(3.) In the backgdrop of these facts, on 24 October 2017, the present suit was filed by Vijay as one of the trustees of PC Trust (Special Civil Suit No.1372 of 2017). Prakash, Aruna, Deepak and Orbit, respectively, are defendant nos.1, 2, 3 and 4 to the suit. Vijay has alleged in his suit, presumably on the basis of the Notice and Minutes of Board meeting of Orbit, respectively, of 7 February 2013 and 13 February 2013, that 116922 shares of Pralhad had already stood transferred to PC Trust prior to 13 February 2013; this transfer was complete as between Pralhad and PC Trust; and the shares held thereafter in the name of Pralhad were in his capacity as a trustee for the benefit of the transferee, namely, PC Trust. Eight months after filing of the suit, on or about 11 June 2018, Deepak and Kishan filed an application (Exhibit "88") in Pune District Court in their suit (SCS No.1418 of 2016) seeking an interim injunction restraining Prakash and others from interfering with Deepak's reappointment as Executive Chairman of Finolex Cables in the AGM scheduled to be held on 25 September 2018. The District Court dismissed that interim application prima facie negativing the challenge of Deepak and Kishan to Prakash's entitlement to 100300 shares and his right to vote thereon so as to affect the reappointment of Deepak as Executive Chairman of Finolex Cables. Deepak's appeal from that order, has been pending before this court. This Court, however, by its order dated 21 September 2018, made it clear that it was making no interim order in the matter. The Court observed that any voting that may take place on the basis of 100300 shares of Orbit held by Prakash would be subject to the orders to be passed by this Court on Deepak's appeal. All this while, during the pendency of the interim application of Vijay in the present suit (SCS No.1372 of 2017), there had been no ad-interim order in his favour.