NAGESH KUMAR Vs. NAGESH HOSIERY EXPORTS LTD.

JUDGEMENT

(1.) IN the order I am considering Company Petition No. 97 of 2006 filed by Shri Nagesh Kumar and Smt. Renu Mehra under Section 397 of the Companies Act, 1956 (hereinafter referred to as the 'Act') against Nagesh, Hosiery Exports Ltd. and others alleging certain acts of oppression and mismanagement.

(2.) THE undisputed facts of the case are Nagesh Hosiery Exports Ltd. (R -1) was incorporated in 1980 having its registered office at G -32, Masjid Moth, Greater Kailash -II, New Delhi. The authorized share capital of the company was initially Rs. 5,00,000 divided into 50,000 equity shares of Rs. 10 each. However, in the year early 1980, the authorized capital of the company was increased from Rs. 5,00,000 to Rs. 20,00,000 divided into 2,00,000 equity shares of Rs. 10 each. The main objects of the company are to carry on business of manufacturing, trading rebuilding, refinishing, exporting, importing and dealing both in wholesale and in retail in tools, articles substances plant machinery and commodities of all kinds.

(3.) FURTHER , Shri Krishna Kumar, the counsel for the petitioner, contended that R -2 and R -3 are guilty of various offences including criminal offences and also owe substantial amounts to various persons taken by them as loan or amounts not paid during the course of business, indulged by them in their personal capacity. My attention was also drawn to the various proceedings which have been initiated against respondents Nos. 3 and 4 and are pending in various courts/forums (a) a winding up petition has been filed by Vikas Fabrics before the High Court of Punjab and Haryana, against Flow More Apparels (P) Ltd., inter alia, seeking a decree for more than 43 lakhs on account of goods supplied to the respondent company. The company, Flow More Apparels (P) Ltd., is owned and controlled by R -4 and R -3, who is also the managing director. The High Court of Punjab and Haryana, by an order dated 20.2.1997, directed notice and also directed that the company will not alienate or encumber the assets of the company or dispose of the same in any manner; (b) a petition has been filed by one Mr. G.R. Grover, being a suit for recovery of Rs. 19,64,105 in the Court of Senior Sub -Judge, Ludhiana, against Mohan Agencies, a firm also owned and controlled by R -3 and R -4; R -4 is also party to the said suit; (c) a criminal complaint being complaint under Section 138 of Negotiable Instrument Act has been filed against Santa Clause Apparels, a firm whose partners are R -5, wife of R -3 and R -6, wife of R -4. By the said complaint penal action had been sought to be taken against the said two persons for having not honoured the cheque issued by them on behalf of the firm.