NARENDRA KUMAR BERLIA Vs. OM PRAKASH BERLIA

JUDGEMENT

(1.) The plaintiffs seek an injunction on the sale of a property of the defendant no. 15 Company consisting of 20 acres of land situated at Thane, Maharashtra. The plaintiffs claim the present application to be a derivative action for the benefit of the defendant no.15 which has been described as a family Company acquired by the first plaintiff 's late father in 1981. The defendant nos. 13, 15, 16, 18 and 22 to 26 are the alleged offenders with regard to issue of shares and appointments of directors of the defendant no.15 Company which are the other complaints of the plaintiffs in the suit.

(2.) The primary contention of the plaintiffs, as would appear from the submissions of Mr Abhrajit Mitra, Senior Counsel, is that the sale of the land at Thane should be restrained on the ground of the sale being undervalued and not in the best interest of the Company. The plaintiffs also challenge the manner in which the Extraordinary General Meeting of the Company has been called in violation of section 101 of the Companies Act, 2013.

(3.) The plaintiffs are supported by the defendant no.3 who questions the need to sell the undertaking of the Company. According to Mr. H.L. Tiku, Senior Counsel, the defendant no.1 has illegally issued further shares after 2004 and has allotted 5 lakh equity shares on preferential basis resulting in reduction of the shareholding of the other parties.