NORTHERN INDIA STOCK EXCHANGE LIMITED Vs. TARSEM DIWAN

JUDGEMENT

(1.) CIVIL Misc. No. 16956-CII of 2006 is allowed. The main case is restored to its original number and taken up for hearing. CR No. 6134 of 2006

(2.) RESPONDENTS herein had filed a suit for declaration that the election of the Directors held on 24.8.2005 at the Annual General Meeting of M/s Northern India Stock Exchange Limited (defendant No. 1) herein is illegal, null and void being violative of the express provisions of the Companies Act, 1956 (for short the Act) and Memorandum and Articles of Association of the Company and for a consequential relief of permanent prohibitory injunction restraining defendant Nos. 2 to 6 to act as Directors of the Company and defendant No. 2 from acting as President of the Company and also restraining defendant No. 9 (i.e. The Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh) from taking on record Form No. 32 and annual return dated 24.9.2005 and further for grant of permanent mandatory injunction directing the defendants to conduct the elections of Directors afresh as per the provisions of the Act and Memorandum and Articles of Association of the Company.

(3.) THE said application was contested by the plaintiff-respondents where he denied the averments made by the petitioners herein and averred that the application was not maintainable because the petitioners herein had violated statutory provisions of Sections 257 and 258, 172(1) and 173(2) etc. of the Act besides violating Articles 109 and 110 of Articles of Association of the company.