Karnataka High Court
Ultrafilter Gmbh vs Ultrafilter (India) Private Limited on 26 August, 2011
Bench: V.G.Sabhahit, Ravi Malimath
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é{s§:<:; § :é&?::§e3~€;é£:E:;;': wéih 2:; /5 ~*§% é} 8} ?} ,...§3M, That an agreement mg is: be yeacfieé.-.___tQ érzcrease the a§9@!§ar:€:'5 ghare capiitai 1:0 "Wat the mmgany fiace Equipmant.-'$57 and excézssive i§'rzp:3:'§Eng.:<::'*ési:r§§u.ft@r %*c::*I,'Sé'3.2:Eg5.e dryars and rm: the :espo:':2c£é».€§€"t<3:*§"§*;':§'r':3}f; _ 'Thai the re$mndVé.{f:Qi"~V..$E"zQs.§§"aj__Q;Q§~V_Cii_§é*%';;':£;>L'§ng against i3'ace,_ mat the mggén¢m%:%é~¢::n§'a:§;<%:sm.;:d estabéish a nev§; §CE.§3_EEti'§'§?; V "Ej.E'z';=3s'¥;f'..,e*§¥°€é:s=,*--*:1--_V éE*;@}_a§_§7%=z._%;"¢E*:'é5§;j3z§g_%:*ae§3 wéaiéeréghig ES :§e§;:>e"3%§5;::;:_.VEhe:~"§.' '--._a'pi§&-E--!.an:5 weuid C{}E"3'E§fiLE€ is ei><&rc'é?s?éé%'-»..L4§%t;é "':i§_§"%*:é:§' in the éfirecterg bwré 'V%'::%.éFa'£f§:":g; ' V 'fihaifl%§E'2V+.=3,Va_Q;3a5§a:"si: wéfi magtabéésh 329 u§:;*af%%:er' >r§*§a__nC& in Enéia a? what aims' effsrt ané 585: taka am 'ma: they wéié egtabfish 5:
éiégyzg uéirafééte-r {ééfifié in Germany-wp$$ét§@r: in Emééag ._._g;g;..,_ hf; That there are ac} resfirictéens in any fl{}CE.é{Y7i--E¥'%{ 3:" agmement regtraisziag thg yighéz agpeiiani :0 carry an Etg nermaifr'b:.sSV§::*:;:§§:::..V_"'_'T V' in-aéudmg saieg cs? E23 gas-3&$'-tn' it}; c::2S:f:<:§.:i:*2éé*§5é.»r1 Enééag :} mat the a$De!isf;:--f:'~i$ §Aé9t'3§EV--._ §:;:€:é-%§§é'd"Vite co;**{:;3et@m«:é:h--.§§1&r:§n1%§§:ny'j'~-»__ .' 3?) That the a;;§a§;':e _§.¥a§':i_V.i:'~§;j:a%: é§j:g;";: :."fiéuc:a:'y duty {QW;;§$.gh@ {my} ,,,, it séearéy emerges 1:13? ihéifé "LS "the agpeiéant to acquérfi majerésy shV§:f§s.,aré'd_ "E{'%_ "au{:%'x:e at a CGfli§"'$E§E§'§§ §GSEE§QF§ in
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mmgarng. Emh pastieg have mafia aiiegatiasrzs agaéngi: each ather that {hey are manufacturing féiterg in cemgetétéen wétéz fang camgamz, {:2} The ameééaat having: acquired $§§.€§:;'8 are Enduigmg £21 camgetmg busé;:e$S~»»w_ét?2 :%'§é 'C';:%'jrn§'2:;ri_y, The mmgany fig thereferé fa<:e'§ ":;2,V}'Vi:*;:%':. a V\:é't'§f&i?:V:;CV§s*";"*s;jigetEtiQs*: with Pace Equégfimerstf §hf:a:"2 the cempany having Seen ta§§;e*;V{§'_ax:<;é§§VA»§y "*::'§<:VVi5e"»éi;';-§;%"e§£a:':t, It $3 {wt just 3 the §%E'"f3Q&_f"§'§,='.
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-e._ 35e:3.,E%be:5%'s'::, ;A«=§3:*:é zéagéégéni: am by the agpeéézarzé tswxasfis the '-.:3<§%f;§~;:_§'§§4;'%;. Tém %§':§$%'§§§ (2% éihé wgeiiané S§'§€3é§§é be gnéy h"--.}§:é2za.:w:»%§;'fi§ 32$ asmfiaség am §'%QE"":§ gigs; $3: §'}@§E"§§ e %§g;J.m..,.%..A .X' ~,:_%:e ;§<:§--._§@1{%'Q§ .;a;_§_g€:-ééafif: E3 harsh ané bazgdéngame. "'.§""§~*';e:::'*'z--~:'*€Q:"«:?%V,_§'ai:$'é*§ve;':a gresgure was bang §><&ri&fi by the éféan .4 ic*§ "'§;:gr§:é£%: the %§2:§§*&5'{s G? ihfi <:§m§a§":'y', Yhg 'é'.«§s"é§'%a:Eee7%" Sffiééffiéiffi b%§§2§ mafia $3,! the awaéiasz Es; M46."
$harehe!éer :3? the cemgamy, the apgeiiaat canr2et ~'-agct agaéngt its interest. .' {9} "'§'he cemmunicatmns also ma/ea: .ltéiai:=_'j':._hjef--.____"'_ ameiiarst wag §§'"€S§EJE'éziE'Eg the reggkétagdent E-he '4 effsiri af the aampetétere, wéwiah camfixietétlari:'2«;éas f$aE<€3%é"
by the aggeéiant, It £3 thereferegvédéfrgic'ééfiai =;5%f;F?eeA.:j:v.f:v§}§$;u_:§hV% ihe apgeiiani wag a shasééé' 'E;r_;*>'%§5'£:%;f.i:'éVsf; géfiit-ggaay, Er: View at" the fact ihaé %:a;'§:éfj éaterest were amy tawarfig Eeimg §§§§ by I fiace Eqazé-;*;:<:"=;as-:'éféA'it:;V'.' é*M.;%.sA..3gp;3eE%a:zt $5; $0 ensure its awn __'E§u§§ment ratéiar {ham Em?
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iherafcre hard and buréefisame, §-ientef the amen sf tiws aggeitani ég a dear Qasa Q? gpgsregsémn, {gs} NE finesse facts and cirmmstances Eeaé. i:3 "t.§'é'evV cewaéugéésrz {hat aii is :29: Wei! with the cemganygraé ~ share heidars. In xzéew of Eh?.§i"€'$€§'§?: éi'€{}'é.fi§.d'?;'f' §§"§en. V asmwsséy Canngi bg run effectivéiy.1__ *"{héi~_ :2 _ '€.1a 5s§g=..,,,<§f'1f.: oppregsign Exes; been fiéa. de 9;}: :«'~;Vfr:é_:'*--:". es',p0:':'§é1eVAs*§t. The aggeééant ever: i§'f':,§}L!g§'3 bVe;_§fi_g_ §'; rr§»&n»i:;*.;i:§z'p~:'._'§E€~3re heiderg is £QE"§%C&¥"§"E§ w%t§"2i a Ezéfg. :;:;@z%':«fe*%' éri' .;_a§§'§--V"iE"-Ea: mam meetéagg. i2é:';i:._ 'iézés ;c'j%;:.:s:"h:'":"é";Ve%'§ce§ mraé cammtéiim Mmitteééy {$153 ';.'--"2 §';*;»'r,f';':e1 §u$%:2e<3;§ §_ér_é5Ci5E'%g.--: §'¥%i:§'iEf%€€T§§\;' égaéngt, we atismgaray by manu?aCt3;.af§%§g; --j.:*f§2a:_é4'$»<4é?z'§«:'t"g me very gams pmdazeisg "'£"%*':e ;j:§>g:e;§§aa'1:%: ms' "1e§;é=r2E:} tixreatenad that E2'; 2;-mgsié start é*:":.a'::"s":;::fa§?%ifz;2/"éV%s:3_ " 'éjiirafifmr madé 5:: Ggrmany' pméucés 5:: Erpiiar ;3Ts':»~.:;%*§x;'2;Végi"<=§é.»*,£:%;* e,2'f&;'€ gag' 50st 5:" may éake", "§"hEr§ fig as §as$«i.b§§%%;~=§' :*.§§~V":he mmgamg ééeing mrz nmmaiéyy effectéveiy '"-. €3;'"Tp:'$'§€--ic'a§E2g ifififiéf' Eééé given girmzmgiagzaeg. '§"%"z:§ . 'sfeargjaéééent aiiegeé ma? ihg ameziafit ES :a:*:*g:%:"2§ GE? 5 ma? m.:u:§§%:':e$$ an fag fix?-5?': aséé ma ezxm aggééeé fag' ifiééfififfi Qéfimw 233% _..,43....
where 'Km Canmany has aim agpiieai far me game, Tm: apgeiiarii afiméts m such 3 aourga GE' aatém and em§3has%ze§ that were is: as bar ta dc 35:55': a bus§:":e$s:;"'ETn the icétamiy 0? the circa;m$tanc:e§ of the cage, a mafia out far winding asg $2' the companyHgfis-..:}u§:V.é:€d' aqagitabée §§"OL§§""§§S. Hawever, '£58 wir:e_:i§ag-::2--§"s:)f._f§"::'e Campany weuéé be prejudicéai. and E'1é€=:--;e it :§:«:>_§L:s't neceasary m the given c% §'c'u;.m-s:':,*.a§i§:as':c?§_écifie gage ta éérect 'she mingrity S§"33E'T:£=§: i"iv€',i_§é€:§_'"AVV';£i§SéE§ {SE18 majaréty. {Q} ?%'é§sV.--a§ready énétéamé OS S4X:@9§"5éf:.:«:té:ii:héu:€;;§t:i :;T.i}§;-E? }a§é_"Eg"§;'V48angaE@re with regarfi :9 the uéé Q3'? theVfzéégéévsi§fi'a§§é'...a§a§n§i {ha mggenaent and tha mi: és"3tEE'§ g'es:"25§-¥_ng~;"»LVfherafemg 3Cms*§§§":g is the «3_§§€:"¥i.E:7'«3~n%:;A,iiéyg rea§'::i§*-::--;*;:;,:E& éa wiih regaré is {he 33% 9% {he 'é"s'i%3;*.E§"§§§§§fi3f5§Ee§*' $3; {he ?$S§Q¥"?;€§@i':E, J .__§e"": ,.§_"5§*;--e?re fig an afiggéuéa fiégtmsgé: batwegn tha
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wéthdrawaig am canceiiatimg 0? the agrefiments' "-'libs agpeéiant is manufacturing ané setting we gama {hat are bang manufactured am mid by "
which is therefgre am/erge 1:3 V:*:-ézé"-ini:€_4re§§?$ l€;§fVV'Efie zespanfiezstfl Admittaaééy {here alfeg §§:%iTy [T"%:véA;§'<;-..,V sharehaiciers and bath iwave };o5é>:*::t::L:'L:'s'z*.2__ ar'2a §e:f:fae':r';ffi:'%_:§§:é%rr'e's"j0f the articles. Even 'a§*2Ga;g;,.?§zi:he gt-,*s--§;*V35%é,='§Ea'r's*tL'.%'so§:dTg"Q;-Esfizéafief the ghares, E": has been C0r1ff4'7<£:-r::f.<;'3'c:E"' psweg" in the baaré meetérgggi p§{}..<,eto maan, that urztéé am VV§§"V§e§é§éa:n aauifi bé taken by,t--§'*;--e he §§ a magforéty, "Pisa aQp€3iian:€'v--.§13§ '3ié'ée mam meeting feaabimg it :3 :3s:z.§'€:§é"t&::.é .;:r5a'::_a:VE;;'E;e"s;. f2'Lf 'izhfi raggsnéent. The maieréai .v..;§iaCe;dfl.v;G'§;E§ $?é<;}:,~.:._f§Eff:M3;i {hem are a seréag sf Efifiiflfiflifi AW§%:{"§*j§b:;ia¥i§_i§:.:;;a:i %§':e a§§e§§§::t., "Effie actg cgmgéainefi as' are nsiAégaégayéa'i'é'flr:"T:§'ut {";{}fi§i§§"E'i.,§§i_§§ am are Einkea? EC: me am 'Vanaihiéri "' 7§?':'*<.=:-' é§g3e§Ea§2§ gmgsgm is gain agsaéuze cagztvsi };2:zé§'"i:%f;e fifiéézgazégr by §§§'fl$E":§§§"°%§ afifiiiéasai 3?%3%'"§;'i~$. Gs": the ,.AjA'r"*§§f';;é§'é ié $3352: €%*":§m; the :*é.33§§€%:§§rF¥; has. wag:
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;233}«»* fak€"Z Qampetitive Zbugénegseg have mgr': eméarkéd upon? by the a§p@£Eas':1: which is adverge $0 the §{:t&res;;%'a§f we aampasy. The appeifant has iii advised the re$s«;":-3'r:V:<§.§:i'% arzfi mg ever: threateneé, 8:: 'these materéai §9:.£§4T§*:..:Eié_;:5 5:: hefifif that the intention 9? we a;§Jpe%E_$nt:; E3 pecuniary advantaga tovtzhe deétz-'%rws.:és;:t '*s:§.the«"s*e§;:»£:sV:éé&r2t, far a wrangféfi aggurgryatém éf §:'F;é'a:§'t§»':0;f§t;;}:%ré"€.*. an éntesztien :3 ever threw Em :°asg0rI:d?t:*1':t;:"A E~£<,>§i»<::e ii E.s5 zé féi case that €$i§fiE§S§"'iES éV§¢:_éE.§_é's*:%*;'*--~*'Such aiiéfififi $3' the agpeiéanfcis Q-f;:*g:}§9é1$'$§s.ié"'%;'j;3,5¥' E--Sa «czsnténazing 0§p'res$£@:":e ""§'"§2e €§nd£L;~<:%:-V:"3§'*Vé:§%e"'iz;;:2gs:§§a--:1: §s"**vb~m*éen§Gme, hargéz am wmrzgfué, .;"ef£ea:*.:§V%':§.:hé%§§C:<_:G:'?.ccxééfédanse beiweer: tha 'awe sééayehsésiezigf * "E"%*:e._ 'ig3..?;3;:ef§'E4"a;__:*':'*:. by aémiiiaééy engaging §'2§:'*::s&Ef_w_it%@ a4":;:égfhg*&*§'~EtEéé'a Véémsany hag aated in 'graach C35 :_' g§z;e::3§ ?a.§:§h:,_A*-gm:_'a"':;$t= "%*é'éV wag exmcteé :3 ac: <;s;n;%y in the §fi€§?E§i'«:°§§'..4;;§i;gA4Vé:§VFé§.§afi'g and me: against ii; "me aggaéiam: afim';¥:.s"' $r2v§f-- §;gé:.'f;%Vf'éeg his aatims E32' aiaiéng am: the :;:2§:*:§§%§2:Ev%;:% b?:..%S§n&$$&§ $25: $2'; $133 anéfirifikam, $2: mi 2% zgrww "":*:'"°"'"
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gmhébéted by fay»; since the agreements betvaam them have mes": tarmiaaieé. Thus 'me appeEla:':é: seekg is justéfy mg mmpaiétfize §u$§ne's$@s' we 353$ mt deny it L;iéj1§':-gr these cér€um§tar:ce$ &!"ld in View m' the mataréaé §;»'n'--s"*.;'e.§V'.;'.:;r.:";;_%'ré,_.__"
we have rm hesitation ta hoié that sufficéeat.._g_E<3.a;héS arzé made Gigi by the resparzéerztf fcéf v§:é r%:."§é%*\ mmsany an 3225?: and egazétafiié gr@uh':§§;'V-- C<c;:2§:é--r:§1';Ifea*'ré'%:Egs';: sa- és rsecessary that the a§pa§§'«:%;":"1§V:V: "é';eir:§ ~a""::€§z2§:;éty $9 ééfacteé E9 geii figs.:f3%:.,3res_ €§ %:'h}é §;$Sff:}¢§f;§§ér'::€¢VV'V {5} :<i2{'>%".§:§S:§:f7;'?V'é§."§;f.f:€V':"}?Va§%§ the maieriai pfaaefi bafare if2n:E9é£'§e*v §;g$§»§:® .€:Eh'e'_'vém§:%§ hed Qfdfif, Gm facig it heéé %:ha't t§sg f'EG?§'f§§'E§§ but 3 giwéfieé gartnegghép b éi:as§,%ei€:9:" the éfiiiiififlfif §%"'%§ the %*@§§§§'"%5%E%'§i:. "°§'"%3a€:"';*~§'éV§e 3-:s;m§'é3§§a:r:§ ?€é%;?'§§r:g veta gsvgerg 22:': magcsr fi€{"..§S§G§'E.;'S 5:25 Egg €§§'"f¥§€t& wéfiz the bagsénesg a? the ::«:>m§;;»s;:_§*:3;.,~ Ehfiffi we aéiegatérszgég fig: fiésifi the §ar%:ée§
-'«4___§§a§ms%. 5'ea__é':*r; Qther. ii wmséé mean 'ma: mm 9? them have A bf*:'ga:_§*2_%:é me d§{%'I?E§"E€ :3? a;:rn§§%: gage' faéim iaaazayés aaifi iézzgg, m; z:%:§§ €%*:§ ssaa-er&$':: 9? tféa §::*a3m§a::%g in "*2 E W52- jeepardy. Hence, it fig a ::a$e where the majaréiy aEEVe:-u;;;_es sppresgéon by the minority and 'EHES minoyity hag g£.f<;é'*;v"V{.*~:*3r:;fi'4%Lj*».*.<;é-.. gravésmng Sr: {fie Artécfes. That tm re§a:ém$hs'{§_ 'b:.=;'c.$'e"én M ihe Ewe: parties hag become SS somj-t?é'a'i'«%:he'§,{ c_ér§ééé.t fiarfty an {$29 business 9:' Em comfiany iéjgffié-:_é5'§ a:'él<:§.. Ef~.sa5 iisevf weaséd be a very valid gVr::';aa_%:%'~.:i§> f@%"vur._i§::§--%..;é;g'_: {he camparsy $3 just and e<:'*;----=\;uEV;'c:a§>E;e::V"*g':;;5_L;--rf§:§-;_ Ar.§';::;és'<:éA::":g'§E:..=', the QLS under mega cir¢ums:t a§;_g:e§ figsmndeni ta purchage the $E'"t;Vaz5£e;s~;:.VV'§.:''>r's & fair mime ii; ée ;§V%_'}_§§-«..J$i'ef§§§§.?§:§FfT*;' Waaééiarg sf %:%'2€ €smpa:§yV.------'§*hé 'EV§"h§:1§:;g$ ':*é>c::"§Vs?dé'§€§*'v~§:i%;'}§he €L8 asé baseé 0::
mat&r%aE 8_nd fir: fjééfi 368 any fiervafséty in i:§"z€ fés'2éé;'z§$ %§'c§:"ded ' »-GB ma: aaiig far any %;':t§:'fe§'s--n§§, %'":!*§$"<;:a4';r:af'E-:js.i.'a:*:§ arréwé at $3,! {ha Cw erg ' '§-via? :;A*e;a§a;":abE"é"a':"§§V are éagaci in"; "She matevéaé giacéd 7g:~:V. §*a$$r-$_,"~%:%=£.é"n:;e;, §«'¥§€ firm reg Efffifi that acaifg far any §r{:»:% Efafeéé -- _ " ' ' 3 5 ".§;g W Unées" these C¥£'C:U.¥TE5'€3{'sCES, the grater pagseé by the Cismgarzgr Law Eovaré is gust and wage? and d§e3;V.Vé:».r:%%[.§aEE far any inmrferarzae. :for the afaresaié :*éa$an_:=g;;";"2--§e'_*ag§3;;::~3a"%« _ being éewéd of merétg £5 céigméssefiw §§aaa %%AIi§§§g§ PrS* 9.6:'. '£3