VIJAY KUMAR CHOPRA Vs. SUDARSHAN CHOPRA

JUDGEMENT

(1.) THESE two appeals arise out of an order dated August 1, 2006 (Vijay Kumar Chopra v. Smt. Sudershan Chopra [2007] 140 Comp Cas 1), passed by the Principal Bench of the Company Law Board at New Delhi. It is relevant to briefly notice the factual background of the case (facts are being noticed from Company Appeal No. 21).

(2.) THE parties to the present appeals are shareholders and directors on the board of the company, namely, "Hind Samachar Ltd.", a closely held company incorporated in August, 1949, under the Indian Companies Act, 1913. The company has its registered office at Hind Samachar Buildings, Civil Lines, Jalandhar and branches at other places. The company is engaged in printing and publishing of newspapers, journals, magazines, books, etc., in Urdu, English, Hindi and Punjabi. One of its famous publications is Urdu daily newspaper "Hind Samachar". The company was initially formed by late Lala Jagat Narain, a renowned journalist of his time who was father of appellant No. 1 in Appeal No. 21 of 2006 along with Ramesh Chander, the other son of Lala Jagat Narain who was the husband of respondent No. 1 and father of respondents Nos. 2 and 3. Appellants Nos. 1 to 4 and respondents Nos. 1 to 4 are the directors on the board of the company whereas appellant No. 1 is holding the post of chairman and managing director.

(3.) IT appears that the respondents were dissatisfied with the order of the Company Law Board dated May 17, 2004. This order came to be challenged before this Court in Company Appeal No. 10 of 2004. During the course of hearing of the aforesaid appeal, the parties arrived at a mutual settlement in respect of the division of the company and various other properties held by partnership firm. The mutual settlement was duly recorded by this Court in the aforesaid appeal and the appeal came to be disposed of vide order dated October 19, 2005, which is reproduced in the later part of this judgment.