MAHARANI LALITA RAJYA LAKSHMI M P Vs. INDIAN MOTOR CO HAZARIBAGH LTD
HIGH COURT OF CALCUTTA
MAHARANI LALITA RAJYA LAKSHMI M.P.
INDIAN MOTOR CO., (HAZARIBAGH) LTD.
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P.B.Mukharji, J. -
(1.) This is an appeal from the judgment of G.K. Mitter, J. dismissing the petitioner's application under sections 397 and 399 of the Indian Companies Act.
(2.) The company is Indian Motor Co. Hazaribagh) Ltd. The petitioner is Maharani Lalita Rajya Laskhmi, a share-holder owning more than thirty per cent of the shares. Her allegation is that the Board of Directors is guilty of certain acts of omission and commission detrimental to the interest of the company and/or to the minority of the share-holders. She sets them out in paragraph 18 of her petition.
(3.) Briefly, these allegations amount to this that the income of the company is deliberately shown less by excessive expenditure and many items of such expenditure are not properly vouched or receipted, The other allegation is that there is mismanagement of the affairs of the company attributable to the fact that the head office of the company is at Calcutta whereas the business of the company is in Hazaribagh and that passengers are travelling without ticket, or at prices below the scheduled rates, that buses are purchased at high cost and after heavy depreciations sold to friends and relatives of the Managing Agents and/or their employees, and that the consumption of petrol as reported by the running staff of the company from Hazaribagh is not properly checked by the staff of the Managing Agents and the result is that a great loss is suffered by the company. There are other allegations such as that dividends are not properly being declared or that they are being declared at too low a figure, that she was not given access to and inspection of the books of account of the: company.;
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