UNION OF INDIA (UOI) Vs. MAYTAS PROPERTIES LTD.

JUDGEMENT

(1.) THE Union of India has filed this instant petition under Section 388B/397/398/408 of the Companies Act seeking various reliefs in respect of M/s. Maytas Properties Limited. The company is a closely -held public company having only 7 members and 3 directors. The main business of the company is development of residential properties in various towns. This petition was mentioned seeking for ex parte interim reliefs to restrain the respondents 2 to 4 from acting as directors, respondents 2 to 5 from dealing with their personal properties and for allowing the Central Government to appoint ten nominee directors to function as directors. Since the company had filed a caveat, I directed the petitioner to serve copies of the petition on all the respondents and kept the matter for the hearing on 24 -2 -2009 to decide on the interim reliefs. During the intervening period, certain shareholders and certain lenders to the company had also filed applications for impleadment/intervention.

(2.) I heard the extensive arguments of the counsel appearing for the respective parties -Shri Sanjay Shorey for the petitioner, Shri Mukul Rohatgi, Sr. Advocate for the 1st respondent, Shri Nisar Ahmed, PCS for the 2nd respondent, Shri Anil Diwan, Sr. Advocate for the 3rd respondent, Shri Haksar, Sr. Advocate for the 4th respondent, Shri Niranjan Reddy, Advocate for the shareholders, Dr. Singhvi, Sr. Advocate for the 5th respondent, Ms. Shroff, Advocate for the 6th respondent, Shri Mookherjee, Sr. Advocate for SRS Orion. In view of the order that I propose to pass, I am not elaborating their arguments.

(3.) ON 3 -3 -2009, the Central Government has filed an affidavit stating "That Government is agreeable to the suggestion of having at least one Director on the Board of Maytas Properties Ltd. subject to the condition that no meeting will take place without presence of nominee directors."