TRADE LINKS LTD Vs. MOUNT SHIVALIK BREWERIES LTD

JUDGEMENT

(1.) THIS is a petition filed on January 11, 1996, under Sections 111(4), (5) and (6) of the Companies Act, 1956 (hereinafter called "the Act"), by Trade Links Limited (hereinafter called "Trade Links") and three others against Mount Shivalik Breweries Limited (hereinafter called "MSBL") and six others. Subsequent to the filing of the petition two more parties were also impleaded as it transpired that the shares in question which are the subject -matter of the petition now stood in the name of these two impleaded parties.

(2.) It is an admitted fact that Trade Links and MSBL are public limited companies. It is also admitted that Trade Links was the holder of 1,10,000 equity shares of Rs. 10 each in MSBL which constituted 33.33 per cent, of the total paid -up capital, the total paid -up capital being 33,30,000 equity shares of Rs. 10 each. Petitioners Nos. 2, 3 and 4 are the shareholders in Trade Links and are also members of the MSBL.

(3.) TRADE Links has been holding 1,10,000 shares constituting 33 per cent, in MSBL since its incorporation. Coupled with the holding of the other family members the aggregate percentage holding in MSBL by the Mohan family amounts to 58.3 per cent. The family is in complete control of TRADE Links with a holding of 89.4 per cent. Thus, the family controls both TRADE Links and MSBL.