GANESH FLOUR MILLS COMPANY LIMITED Vs. T P KHAITAN
LAWS(DLH)-1983-12-22
HIGH COURT OF DELHI
Decided on December 06,1983

GANESH FLOUR MILLS COMPANY LIMITED Appellant
VERSUS
T.P.KHAITAN Respondents

JUDGEMENT

D.R.KHANNA, J. - (1.)Technically speaking,, this petition moved under Section 403 of the Companies Act by the Ganesh Flour Mills Company Ltd. has become infructuous in as much as the relief sought for cannot any longer be granted. That relief has been that the Company 1aw Board should be restrained from proceeding with appeals I to 12 of 1982 filed before it under Section III of the Companies Act with regard to the transfer of certain shares. The Company Law Board has already disposed of those appeals and allowed them on 13-7-1983. Thereby the appellants before the Board, who were the transferee of certain shares, were made entitled to be registered as shareholders on the basis of those transfers'. The opposition by the company to their transfer was negatived. The company then filed a writ petition against that decision of the Company Law Board, assailing the same on various grounds, but without success. The writ was dismissed on 22-11-1983.
(2.)There is thus no further relief which can be granted to the company under the present application, Mr. Khanna, however, appearing for the company, has attempted to bring out a cob-web of problems which are likely to arise as a result of the order of the company Law Board. According to him, the motive behind the transfer of shares is net their acquisition simpliciter but to capture the company and take o\er its management. This, it is urged, would be prejudicial to the public interest or the interest of the company's affairs.
(3.)Since the controversy has been raised by Mr. Khanna, it would be helpful hereto mention tils background. The Ganesh Flour Mills Co. Ltd. is having two vegetable ghee factories, one at Delhi and the other at Kanpur. It has sonic other units also, manufacturing solvent extraction, breakfast items etc. The company, however, went into serious doldrums. and there were heavy losses, with the resut that the Delhi vegetable gee factory was closed in March, 1971. A petition was then moved under Sections 397 and 398 of the Companies Act before this Court. During the course of that petition, a committee of management presided over by an ex Judge of the Punjab & Haryana High Court, namely Mr. Justice Jindra Lal was appointed, which took over the affairs of the company. Some efforts were made to rehabilitate it, but without success. The result was that the Kanpur vegetable ghee factory had also to be closed.
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