PASARI MILLS LTD. Vs. KESHAVDEO

JUDGEMENT

(1.) THIS is an appeal from the order of the Additional District Judge, Vidisha, disallowing the Plaintiff's application for appointment of a receiver. The main contention of Shri Adhikari is that at present unauthorised persons are meddling with the affairs of the Pasari Flour Mills Ltd., Bhilsa (hereinafter referred to as the Company) and are running the four mills without any warrant.

(2.) IN the Plaintiffs' suit which is pending before the Additional District Judge, Vidisha, there are in main 5 disputes for determination. The contest between the two parties in the suit relates to the validity of their being directors of the company. The company itself is Plaintiff No. 1. The other Plaintiffs (Nos. 2, 3, 4 and 5) claim to be validly and legally appointed directors of the company and contend that Defendant No. 1 has already ceased to be a director and the appointment of Defendants Nos. 2 and 3 as directors was ultra vires. The Defendant's claim and contention is vice versa.

(3.) THE 17th annual general meeting of the company for the year ended June 30, 1954, was held on April 7, 1956. At that meeting Keshavdeva (Defendant No. 1) retired by rotation. By an ordinary resolution he was reappointed a director. The Plaintiff contention is that this appointment was in contravention of Section 261 of the Companies Act, 1956. This is the first dispute which has far reaching consequences, as will be seen presently.