ROSHAN LAL AGARWAL Vs. RAM BUBNA

JUDGEMENT

(1.) This appeal under Clause 10 of the Letters Patent arises out of an order dated 20th January, 1978, passed in Company Petition No. 9 of 1974. By the impugned order, the learned company judge has held that the petition filed under Section 398 of the Companies Act, 1956 (hereinafter referred to as " the Act "), relating to the Krishak Cold Storage Ltd. (for brevity called '' the Cold Storage " hereafter) is not barred under Section 402(f) of the Act. This was an issue between the parties in the aforesaid application which has been decided first.

(2.) The respondents-petitioners filed an application under Section 398 of the Act, which has been numbered as Company Petition No. 9 of 1974, in which the relief sought is that the management of the company, i.e., the cold storage is conducting itself in a manner prejudicial to the interest of the cold storage and the transfer dated 24th May, 1974, made in favour of Roshan Lal Agarwal, the appellant, be set aside and the appellant be restrained from enforcing his rights to the assets of the Cold Storage, illegally transferred to him. The further prayer was to constitute a new board to manage the cold storage and provide for the conduct of its affairs.

(3.) The sale deed in question was executed on 24th May, 1974, by respondents Nos. 10 and 11 in favour of the appellant. Admittedly, the aforesaid application was filed on 24th August, 1974. In order to determine whether the application was time barred or not, the relevant provision is Section 402(f) of the Act, which reads as follows :