BANFORD INVESTMENT LTD Vs. MAGADH SPUN PIPE LTD

JUDGEMENT

(1.) THIS is a petition under Sections 398 and 402 of the Companies Act, 1956, filed by four petitioners, namely, 1. Banford Investment Limited, Calcutta ; 2. Sanchetti Food Products Limited, Calcutta ; 3. Shri Mohan Lal Sanchetti, Calcutta ; and 4. Shri Rohit Sanchetti, Calcutta, on March 11, 1995. The respondents in this petition apart from Magadh Spun Pipes Limited (hereinafter called "the company"), include the Bihar State Industrial Development Corporation Limited (BSIDC), Patna, and Industrial Reconstruction Bank of India (IRBI), Calcutta. The registered office of the company according to the petition is located at B-229, Srikrishna Puri, Patna.

(2.) The petitioners claim to hold more than 10 per cent. of the equity share capital of the company and also state that they have made full payment for purchase of those shares through account payee cheques on scheduled commercial banks and holding those shares since at least five years or more. Apart from undertaking to produce the original certificates the petitioners have also annexed a copy of a certificate of the statutory auditors of the company which certifies the shareholding of the petitioners.

(3.) THE petition also sets out the various grounds by which the members are aggrieved :