Rajeswara Rao Vittanala, Member - (1.) The Company Petition bearing No. 10 of 2013 was initially instituted in the then Hon'ble Company Law Board, Chennai. Upon the constitution of National Company Law Tribunal (NCLT) Bench, at Hyderabad for the States of Andhra Pradesh and Telangana, the case was transferred to this Bench as it falls under the jurisdiction of this Bench. The case is numbered as TP No. 96/HDB/2016.
(2.) The Company Petition was filed under Sections 111, 397 and 398 of the Companies Act, 1956 by the Petitioners by inter-alia seeking directions to the Respondents; to transfer 7360 shares held in the name of Late Mr. M. Koti Reddy to 1st to 3rd Petitioners and Ms. M.V.L. Sripriya being the legal heirs of Late Mr. M. Koti Reddy; to appoint an independent 3rd Party Auditor to conduct audit accounts of RS Precision Engineering Industries; to direct the Respondents to purchase the Petitioners shares totalling to 57,710 shares at the fair market value ascertained by independent valuer; to restrain the Respondents from raising any loans for the 1st Respondent Company creating any charge over the assets of the company etc.
(3.) Brief facts as set out in the present company petition by the petitioners are that Rohini Auto Electricals Private Limited Company (herein after referred to as the first Respondent Company) was set up on 19th September, 1983 by Sh. K. Abbai Reddy, Sh. Bantu Rama Rao (Respondent No. 2) and Sh. Mavuluri Prasad Reddy (Respondent No. 3) being first Directors of the Company along with 4th Petitioner. At the time of incorporation of the 1st Respondent Company, the father of the 1st and 2nd Petitioner mainly Mr. M. Koti Reddy was in full employment with Shaney Paris Rhone Limited. The Shaney Paris Rhone Limited deals with similar business as that of the Respondent Company No. 1. Mr. Koti Reddy got so much experience in manufacture of starter motors and alternatives and also underwent special training in France to study manufacturing of starter motors and alternatives, while working in the said company. Subsequently, Sh. Koti Reddy resigned from the said Shaney Paris Rhone Limited Company in the year 1986 and joined the 1st Respondent Company. He has contributed so much to the development of the 1st Respondent Company with his vast experience got in Shaney Paris Rhone Limited. He was instrumental in designing machines and tools for the 1st Respondent Company and, also provided working capital from the agricultural income of his wife (petitioner No. 3);