RAM PRASAD SOMANI Vs. BANK OF RAJASTHAN LTD

JUDGEMENT

(1.) THE present appeal is arising out of the order dated 5. 2. 2001 passed by the Additional District Judge No. 2, Udaipur in Civil Misc. Case No. 6/2001 (16/2001), by which application for injunction of the plaintiff-appellant was dismissed by the court below.

(2.) THE facts of the present case are that the plaintiff- appellant filed a suit for declaration and injunction against the defendant-respondent Bank alleging therein that the defendant- Bank is working since last 50 years and having about 300 branches in main cities of entire India. Its registered office is situated at Udaipur in Rajasthan and the defendant-Bank is a company registered under the Companies Act.

(3.) THE grounds for challenge raised by the plaintiff in his plaint are mainly two folds. One is that as per sub-sec. (2) of Sec. 166 of the Companies Act, annual general meeting of the shareholders can be held only at the registered office of the Company or at some other place within the city, town or village in which the registered office of the company is situated. In addition to above, the plaintiff-appellant in para 10 of the plaint stated that, as per section 166 of the Companies Act, any meeting of the shareholders of the Company including extraordinary general meeting can be held at registered office of the Company or within the city or town where the registered office of the Company is situated. Second ground of objection in the plaint was that holding of the meeting at Mumbai will cause hardship to 32000 shareholders and since the meeting is important one, the hardship is much more grave. THE plaintiff-appellant also submitted that the meeting is being convened at Mumbai to give benefit to one Shri P. K. Tayal, Chairman of the Bank and his persons. THE plaintiff further submitted that some of the shareholders of the Company are having even only 10 shares. 20 shares or 50 shares and they will have to go to Mumbai to attend the extraordinary general meeting. According to plaintiff, in last 50 years from incorporation of the defendant-Company, none of the annual general meeting or extraordinary general meeting was held outside of Udaipur.