TRINITY COMBINES ASSOCIATES Vs. PRABHU DAYAL

JUDGEMENT

(1.) CHALLENGE in these two appeals is the order dated 20 -1 -2000 of the Company Law Board (for short 'CLB') whereby following directions were issued:

(2.) CONTEXTUAL facts depict that two lease deeds were executed between M/s. Trinity Combines Associates Pvt. Ltd. (for short 'tenant company') and Prabhu Chitlangia (for short 'Landlord') in regard to shops N. A -48 and A -51. Initially rent of two shops was Rs. 325 per month and presently the rent is Rs. 550 per month. The landlord approached CLB under Sections 397 and 398 of the Companies Act, 1956 (for short 'the Act') complaining mismanagement in the affairs of the company and oppressive acts of the directors. CLB issued certain directions on 7 -4 -1999 and 21 -1 -1998. However, on 20 -1 -2000 the CLB issued further directions as indicated above.

(3.) THE landlord however seeks direction that till such time a matching cost of construction of shops leased to the tenant company are not paid by the company, no deduction be made from the arrears of rent to be paid to the landlord by the tenant -company pursuant to the order dated 20 -1 -2000 of the CLB. A direction be also issued to the tenant -company to call an extraordinary general meeting of the shareholders and placed the audited accounts of the company for the period 1995 onwards and proceedings under Section 629 of the Act be initiated against Dwarka Prasad Chitlangia and Ramesh Kumar Chitlangia.