K VENKAT RAO Vs. ROCKWOOL INDIA LTD

JUDGEMENT

(1.) Whether an application filed by a Director of a Company before a Company Judge challenging a notice in terms whereof his shares were directed to be forfeited and he was directed to vacate the office, can be entertained by this Court is the question involved in this petition. REASONS FOR REFERENCE:

(2.) A learned Company Judge having noticed two conflicting decisions in M/s. Nizamabad Corn Products Pvt. Ltd., v. Vasudev Dalia and in Avanthi Explosives v. Principal Subordinate Judge as regards jurisdiction of this Court to entertain such petition, referred the matter for a decision by appropriate Bench. When the matter was listed before a Division Bench of this Court, it having regard to the importance of the question involved in the matter referred the matter, to Full Bench by an order dated 17-10-2001. FACTS:

(3.) The petitioner herein by reason of the impugned notices was declared to have ceased to be a Director of the first respondent company with effect from 21-7-2001 in terms of Sec. 283 (l)(f) of the Companies Act on the ground that he had failed to deposit the call money of the shares. The said decision was communicated to him by notice dated 30-8-2001 by the first respondent.