SHALAGRAM JHAJHARIA Vs. NATIONAL CO LTD

JUDGEMENT

(1.) THE plaintiff instituted this suit for a perpetual injunction restraining the defendants, their servants and agents, from passing or giving effect to resolution No. 6 if passed at the Annual General Meeting to to be held on April 30, 1965 and also for a perpetual injunction restraining the defendants, their servants and agents from acting under or giving effect to the purported agreement dated June 29, 1964 and an enquiry :into the amount parted with or paid to B. M. T. Corporation as mentioned in paragraph 32 of the plaint.

(2.) THE plaintiff is a shareholder of the defendant company. The defendants numbered 2 to 5 are alleged to be directors of the defendant company. The defendant No. 3 is the son of defendant No. 6. The defendant No. 6 is alleged to be in management or control of affairs of the defendant company.

(3.) IN the year 1961 the defendant company appointed B. M. T. Commodity Corpn. of New York State to sell the company's article as the sole selling agent. After that agreement was entered into the first General Meeting of the defendant company was held on July 27, 1961. At that meeting the appointment of B. M. T. Commodity Corporation as the sole selling agent was not approved by the shareholders.