SHRI AJIT SINGH DEOGAN AND ORS. Vs. SUTLEJ CHIT FUND AND FINANCIERS PVT. LTD.,

JUDGEMENT

(1.) IN this order I am considering Company Petition No. 60 of 2005 filed by Sh. Ajit Singh Deogan and Ors. under Sections 397 and 398 of the Companies Act, 1956 (hereinafter referred to as the "Act") against M/s Sutlej Chit Fund and Financiers Pvt. Ltd. and Ors. alleging certain acts of oppression and mismanagement and praying that the Board of directors of the company be reconstituted with two representatives of the petitioners or their nominees on the board alongwith R -2; 250 shares each be ordered to be transmitted in the name of petitioner Nos. 2, 3, 4, 5 & 6, 3000 equity shares allegedly allotted to respondent Nos. 2 & 3 and their family members be set aside; R -2 & R -3 be directed to pay interest @ 18% p.a on the cash in hand kept by the respondents instead of keeping in the bank and appointment of R -3 as additional director be set aside.

(2.) THE undisputed facts of the case are: M/s Sutlej Chit Fund and Financiers Pvt. Ltd. (R -1) was incorporated on 23.9.1965 having its registered office at 5, Sutlej Market, Jalandhar, 1440019 (Punjab). The authorized share capital of the company was Rs. 5,00,000/ - divided into 5,000 equity shares of Rs. 100 each. It is a closely held private company with 15 members who are related/well known to each other. The company initially carried on the business of chit fund which was closed down on coming into force of the Prize Chit and Money Circulation Scheme (Banning) Act, 1978. For some time, the company carried on the business of hire -purchase of vehicles. The company has not been carrying on any business for the last several years.

(3.) IT was pointed oat that P -1 who holds 250 shares is based in Canada, he has filed this petition through P -3 as his power of attorney holder, he was one of the promoters of the company; P -2 - he is son and legal heir of S. Amrao Singh who died on 25.8.1984, he is based in Canada and had requested the company on 9.10.1999 for transmission of 250 shares, he has filed the petition through P -3 as his power of attorney holder, Late Amrao Singh was a director of the company; P -3 & P -4 are the sons and legal heirs of S. Atma Singh, they had requested the company on 9.10.1999 for transmission of 250 shares, S. Atma Singh was one of the directors of the company; P -5 & P -6 are the grandsons and legal heirs of S. Prakash Singh who died on 26.5.1984, they had requested the company on 16.3.2000 for transmission of 250 shares, Late S. Prakash Singh was one of the directors of the company; Smt. Kailashwati Gautam who holds 200 shares is consenter, in person, she is widow of Late A.N. Gautam who was the Managing Director of the company; Smt. Kailashwati Gautam, Mr. C.R. Gautam and Mr. Anwar Gautam are consenters and legal heirs of Late A.N. Gautam who died on 25.2.2004, they had requested the company on 9.5.2005 for transmission of 90 shares.