A.K. KHAJA ZIAUDEEN Vs. N. MOHAMED MIAN ROWTHER CO. P. LTD.

JUDGEMENT

(1.) THE petitioners collectively holding in excess of one -tenth of the issued share capital and constituting one -tenth of the total number of members of N. Mohamed Mian Rowther Co. P. Ltd. ("the company") aggrieved on account of alleged acts of oppression and mismanagement in the affairs of the company, have invoked the jurisdiction of the Company Law Board under Sections 397 and 398 of the Companies Act, 1956 ("the Act"), seeking the following reliefs:

(2.) SHRI V. Ramakrishnan, learned Counsel, while initiating his arguments, in support of the petitioners, submitted:

(3.) I have considered the pleadings and arguments of learned Counsel for the parties. The petitioners are primarily challenging the allotment of shares impugned in the company petition, apart from accusing the second respondent of falsifying the books of account and other records of the company, siphoning off the company's funds and excluding petitioners Nos. 1 and 2 from the day -to -day management, by unlawfully inducting respondents Nos. 4 and 5 as directors of the company, while the respondents are justifying their actions, being in the paramount interest of the company and denying any falsification of records and misappropriation of the funds. In this background, it shall be seen whether the Company Law Board in exercise of its wide powers under Sections 397 and 398 read with Section 402 of the Act will remedy the grievances of the petitioners, as claimed by them.