Vijai Pratap Singh, Member - (1.) The Petitioners have filed this CP. No. 40/2013 complaining of several causes of oppression and mismanagement perpetrated by the Respondents about affairs of the Company. Prayer has been made to restrain the Respondents No. 2 and three from acting as Directors of the Respondent Company. To declare the sale of movable and immovable assets by the Respondent No. 2 after 28/8/2008 as null and void; to appoint a retired High Court Judge as a liquidator of the Respondent Company and direct him to liquidate the Respondent Company by the sale of all its assets and distribute the sale proceeds to the shareholders.
(2.) The facts of the case, in a nutshell, are that the Petitioners No. 1 and 2 were the Directors of the Respondent No. 1 Company which is a private limited company and is like quasi-partnership between the petitioners and the respondent No. 2 and other family members. The Petitioner No. 1 and Respondent No. 2 are the Promoter and Director of the Respondent No. 1 Company.
(3.) The object of the Respondent No. 1 Company was to manufacture and sale of Kraft Paper, Straw Board, Mill Board, Paste Board, Card Boards, etc. Both the Petitioner No. 1 and the Respondent No. 2 are 50:50 shareholders of the Respondent No. 1 Company. Due to ill health and on financial grounds the Petitioner No. 1 could not attend the day to day affairs of the Company and was entirely dependent upon his son, the Respondent No. 2. Due to mismanagement by the Respondent No. 2, the Respondent No. 1 Company ran into a great financial crisis. The Respondent No. 1 Company borrowed term loan from BICICO (Bihar State Financial & Investment Corporation Ltd. and SBI (State Bank of India) wherein the Petitioner No. 1 became the guarantor of the Respondent Company.;