A P JAIN Vs. FARIDABAD METAL UDYOG PVT LTD

JUDGEMENT

(1.) SHRI A. P. Jain holding 15 per cent shares in the share capital of Faridabad Metal Udyog Private Limited ("the company") has filed this petition under Section 397/398 of the Companies Act, 1956 ("the Act"), alleging acts of oppression and mismanagement in the affairs of the company. He has also claimed that with the shareholding of his family members the percentage holding would come to 46.56 per cent.

(2.) It is on record that on more or less similar allegations, the petitioner had filed a petition under the same sections in the Delhi High Court in the year 1990, when the jurisdiction to adjudicate matters under Section 397/398 was with the High Court. On September 10, 1996, the petitioner moved the said High Court with a prayer for withdrawing the said petition and on that day, the court passed the following order :

(3.) WHEN the matter was taken up for hearing, counsel for the respondents, Shri Rajiv Dhawan, Senior Advocate, raised certain preliminary objections on the maintainability of the petition. His objections were that the present proceedings are an abuse of the process of law, hit by limitation, suffers from parallel proceedings and, finally, the petitioner does not qualify under Section 399 to present the petition.