PANDAY MINERALS PRIVATE LIMITED Vs. SANJAY SUKHWAL

JUDGEMENT

(1.) This Company Appeal under Section 10F of the Companies Act, 1956 ( for short "the Act") is directed against judgment and order dated 31.3.14 passed by the Company Law Board, Northern Region Bench, New Delhi ('CLB'), whereby the Company Petition [No.98(ND)/2013] preferred under Sections 397 & 398 read with Section 402 of the Act by the first respondent for restoration of his directorship, for declaring the issuance and allotment of 60,000 equity shares to the appellants no.2 to 8 as null and void as also to declare Form No.2 dated 5.9.12 filed with the Registrar of Companies, Jaipur for giving effect to the share allotment as void ab initio, for declaring the appointment of appellant no. 3 as Director of the Company w.e.f. 6.1.10 and appointment of respondent no.4 as Director w.e.f. 30.9.10 as illegal and for consequential correction in the forms and statutory record corresponding to aforesaid relief, has been allowed.

(2.) The relevant facts are that the Appellant Company, a company registered under the provisions of the Act, is engaged in the business of manufacture, fabrication, design, engrave, assemble, refine, treat, cut, mine, crush, grind, polish, process, wash, wax import & export and sale of minerals. The subscribed and paid up share capital of the Appellant Company at the time of incorporation was Rs.1,00,000 divided into 10,000 equity shares of Rs.10/- each which was held as under:

(3.) On 2.11.09, the subscribed and paid up capital was increased to Rs. 3,00,000/- divided into 30,000 equity shares of Rs.10/- each. The allotment of 20,000 additional shares was made as under: