- (1.) The Petitioners herein filed Company Petition No.69 of 2006 before the Additional Principal Bench of the Company Law Board at Chennai under Sections 397, 398, 402 and 403 of the Companies Act, 1956, alleging mismanagement and oppression by the majority shareholders of the first respondent Company. Various reliefs, including reconstitution of the Board of Directors of the said Company, were prayed for. By its order dated 17th December, 2007, the Company Law Board, hereinafter referred to as "CLB", dismissed the Company Petition against which the above-mentioned Company Appeal was filed before the High Court under Section 10F of the aforesaid Act. The said appeal was dismissed by the High Court as being misconceived upon the finding that the CLB had considered all the materials, applied the law and recorded its findings correctly and no question of law arose from the said order. This Special Leave Petition arises out of the said order of the High Court.
(2.) In order to appreciate the submissions made on behalf of the respective parties, the facts leading to the filing of the Company Petition before the CLB are set out hereinbelow.
(3.) With the intention of providing broadband network connectivity to all Government offices across the State of Andhra Pradesh, to connect the State capital with the Districts, Mandals, Blocks and Gram Panchayats, the State Government with the help of Andhra Pradesh Technology Services, hereinafter referred to as "APTS", identified a consortium of Companies, led by the Respondent No.5 to form a Joint Venture Company under the name of M/s AP AKSH Broadband Limited, the Respondent No.1 herein. M/s AP AKSH Broadband Limited, hereinafter referred to as "APAKSH", was contemplated as a Special Purpose Vehicle to undertake and complete the project.;