MANOHAR LAL SHARMA Vs. UNION OF INDIA

JUDGEMENT

(1.) THE miscellaneous application is filed under Section 5 of the Limitation act, 1963, praying this Court to condone the delay of 43 days in filing the appeal under section 10f of the Companies Act, 1956.

(2.) THIS Court ordered notice to respondents, namely, Union of India and satyam Computer Services Limited (hereafter called, Satyam ). After receiving notice Union of India appeared through solicitor General and Additional Solicitor generai, A formal counter-affidavit is not filed, but learned Solicitor General made submissions opposing the application.

(3.) THE brief fact of the matter, necessary for appreciating the controversy is as follows. On an application filed by union of India under Sections 388b, 397, 398, 402 and 408 of the Companies Act, being Company Petition No. OOl of 2009, the Company Law Board (CLB), Principal bench, New Delhi, by an order made on 9. 1. 2009, suspended the Board of Directors of Satyam and authorized Government of india to constitute a fresh Board with not more than ten persons as Directors. It appears, pursuant thereto, Central Government constituted a fresh Board of Directors with six persons as Directors to manage the affairs of Satyarn. Newly constituted Board took several steps for financial revival of satyam. As the Board felt that funds are to be infused to avoid erosion of Company's value, it decided to increase the authorized equity capital from Rs. 160 crores to rs. 280 crores to be allotted on a preferential basis to a strategic investor. Therefore, another application, being Company application No. 84 of 2009 was moved by union of India praying CLB to authorize the Board to induct strategic investors), exempt the Company from obtaining the approval of the shareholders to increase the authorized capital and also make preferential allotments. CLB considered the matter and passed orders on 19. 2. 2009 and authorized the Board of Satyam to pass a resolution to amend capital clause of Memorandum of association, to pass a resolution authorizing preferential allotment at par or at premium and induct a strategic investor (s) subject to conditions as stipulated therein.