Ultrafilter Gmbh vs Ultrafilter (India) Private Limited on 26 August, 2011

[Cites 1, Cited by 0]

Karnataka High Court

Ultrafilter Gmbh vs Ultrafilter (India) Private Limited on 26 August, 2011

Bench: V.G.Sabhahit, Ravi Malimath

IN THE HIGH CGURT SF §<.s€§RNﬁaT§'&K.£ AT §RNG§LGRE«___

 

SATES "EH13 THE 26"'; my 8? ALNSUST 20:; 
PRESEN? : 4 *n'
THE H®N'B§__E MR; JUSTECE ifK3;§49«S>t*§A;%5»F§V'I'TVV.*VI.  
mg  % 1 ,   .  
THE HGN'Bi.E MR  
 ' .... 

EETWEEN:

Uitrafiiter      z
A Camparisy i§;?::t)_:*p.Vo':*at%5:é un_:*i'e_r't;Hri-.:***""
Laws :3? Gég*mavz*:1y_._hasg~ir;fg.jizéz _re.g§st'ered
Office ai:...BiJs:é;ings'i"rass<%: 1,"D~4:2?81,
Haar2';'~vGe_'m:ari%;;« 're;:»re'sent:e"c%~'s3k its
iiginst:i:L1téd._«v--;Ai::'¢«rneg{  - ' . '

 ' '     m,£:.ppe§§an%:;

{By '"';%:*i,v§'%£ag~g:i;3;§{3,-5" Seniar ﬁdvecateg fair
;'§i'§f:~;Si3§§(i'E3§faS¥\Jat'f?';f Ramﬁas 8: yﬁmaszd, Aéwcaieg}

um» 
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. . '«f'_:§§t:j;=§%'%-«§.:a§;'.éfi:'éé§&} Wvaie Limiieég
 » sf<'€§§1ﬁ';:$a::§a éncﬂrmrateé zméer the §
"*«;;rm;§sl§e.:2§ 0? the Csmpanies act, 195%}; §
 ﬁavitag ﬁts i"'E§§$?;E§"€§ Qffiﬁé at ?§@E i'%§@a?%; §
 »VT__E§§€:-Imasandra Inéssstééai Ayegg §

~ _ %Ear:ga%{'::re ==~;E§2 138; §
 fééprégeééieé heseiéé m: is Magﬁaging $§:*a{:'t§§ \
Srégégismiamaﬁéa Kim.

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2, Krishaanﬁa Kiwi SE8 §v'§.R.%<ir2§, $333321,
ﬁat £\.Ia,'?§, Bammasandra
Irzﬁaatréaé Area,
Bangalere S62 1583

{By SrE.P<:>ovayya far §*4f§3:{?'<3':2*.:a;y";(a   'C0,

Advecates)

This Cempany Apgem Es'?E._§_ed :.i%:.<_féa*»Sea;ii:§%§j:":v'::_i.0F_:§of

the Camparaies Act against: th'»2,_'::«.rder ':§~a,t%ed._":§2;"3_2';2GO1
passed én CP §\IogS?;'§8 on the fﬁg sf théﬁerich ijfficer,
Company Law Beard, Sou.thern,..Regi:(>n,.'*Chenna'i;'--Adisposing
the petition by directing---.._fi:e :7es:mr1L*!..e'nfc;/ifompany herein
is purchase the shares heid_"by'~--tVi;1e peti.t'i_:.;m"e.zf herein an a
vaiue 1:9 be determined _..i:;y, fhe' ..gtatut'ory'~--.i;5uditors of the
Cempany an ihea éfzasiis _ef_:';2:;r:-e;"~.i:saiVahCe' sheet as at:
31.031999 ar3d_»Vet'{:;;"'_.  '  " 

This Apg3..;ea-!._.::':j,si:ed' 'farA'heari"hg iizaving been heard and
resesvedvivficir ~;T;;€j§gméi:*s"E iizsméng _§':2~--fé:' prenouncemem: this
day, RAVI rv:ALi:»*:;::T,H-3%.,}dé~;-§.yere'd the faéiewingz

M   :V.AV';_1tj_;D_;;G'ii§ENT

 'E?->;5--«a3rﬁe: éateé :23;Z.28%1, §3S§§{§ E3:

 Shame: in {:§§"2"E§3f%§;' ?eiii%era ;?§§{}z

   me §e%§§%§:2er csmgaay margin is
 ghares izeié by we rasggaégnt thérsén,

L  "'a%f%;%x¢%§é7§i~«A_.§sV%3§e§:;$:%%;%aE '§'E§§€§:§, $3 ?'§S§G§?§€?§E hag fiéeé me

 .. §:"é§e:%t aggaai

M és5i:$  M



......M'vMWvMwn.mw.mWmwm 

2. '%''he ﬁrs: resgondsrzt ig a Private iémiteé

Csmpany. Ii: was irzaamayateé $52 Decemﬁer 198.AS,'::'%ﬁr.}§:.é..
manufacture Q1' fiiter equipment. The sect)nc£ﬁésg}e:Vé'{§'é%s;[f_'i_4'T M
was 51.32% of the shares. The :£a'"pp'e§fAan5?;A 125%i';af}%'--,

the shares. 'ﬁre §'€S§Z}Gﬁd€ﬁt N0, i_ tT%T":'e_..__ ap_p«é£'i;§h~t,':"1'

initiaiiy entered mm a "Techniﬁaf:E_Q§!af§§:a~;safL:'§::3.ﬁ 
as 17"' February 195$»*ﬂ,_hY ¥*>'§":*§4'§'5..:""fife;..EP'D'éE§'aA«nt-'ﬁwas :0
pravide technicai knexéé'  far thé
manufacture  cempany.
Thereafter a;  Agreement" dated
 b~e'i:vwge:2 the apgeiiant and
the gné héggeﬁiant was is subsmbe

ﬁg 25% ghé%*'&.$  §:?:_;ﬁ'i":-_e {;§3'f:'é.;;;"an3,I far 3 gum Qf RSLEZS §a§<hs,

.---."§§":§§_»a§:§§';::§nt'$Es:>.__..:%:.r:;::ar§deé that ihe cgmpargy gm $516

V".gégsggéi§.a»s:%£._§*::~::::«»§.é"ester érzié a ﬂame ?:§:e€:§@5'z Agreemgrztﬁ

g '%:Z'%»§s%?*a§*§bz;i:'<§V§¥jjégraemeﬁigf 3 'Ftade fvéarx ?ae§§s§ers§ ages'

 ' ''é;§;*§&%%:;e§§?tf. a:§"}:.'2§:§ aégiih an amenémazzi is 3% §:*i$§§e3 0? Big
L   Aacarﬁiagézgg {Em §§§%§§§§?'E 5£§¥.§§§'€§ 26% 3%' tag

 Q? {ﬁg C§?'E"%$§§"§'§2 'ﬂag €::>?"f:§i%a§":'y* siagted



 

 

meeufeettsréeg téiters tn the name eee etyfe ef "iJ§traf§§ter'.

The age :3? fiiters eeveieeee énte the requitemegjt_ee§t§eee'4 3
ef féitere eteng with the dryers. Hence   t
started manufacturing its own 'dessitearrt? type.;etAT e%fyete7teL'"1

be said aieng with the filters manufetttttett 

the other type viz"; 'fridge  
were eeing mpetted and..VeoIdé,..ta'i'§:e_g:§ttiittj thetfittetys. The
eemﬂany censultec?   on the
recemmendatiozj_.ejf-.__the1;Cee;i:_e:E%at;At;;"'_jttje_"V:§fe'etpany started
imparting  far being said aiong
with  the eemparty. At
the same-~t,_pe'§t;t   eryer, teaeufaetutee

ey 'éebteeﬁ._};«;es  -beéetg'«...'-tnetketee by eee fv§,2'e,?eee

,.;E;eeit:_te.eet}V' .5:"eett%ey<... ..... ..t~teti::e, there was a eeeteetttéee
  ieieite-.§3>aey reerketéeg its fitters seétfz 'Etéuéeir'
  ettrete'----.;eeA&V§ejte:'.vVtee%emeet teetétetéeg fitters eteee with
 '&e;e:o§' 33; e iettes' eated ZS" Getebet 36%?! the
e.eee§§eet Vtéefetetee the £:'3tt'§§§§"%';? that tee '3"eeee§ee§

4"~.,_"€ie§§eeetet§ee eeteeteeet' eee eetee te an eee ee :25"

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Febmary 29?: am a3 such the cﬁmgany shauﬁé na1§:"---sgse'
the weré iiltrafééter' in am 3? the mocfuctg 
by the cﬁmpany under the 'Technicaf  M
Agreement'. Through this fetter, tfw'é"":3p;'3(~;§£I';§'nt;V%§i§'¢'_

a rzatice cf terminatien of the 'fTrad:é' Reﬁggfwtﬂererﬁ 

Agreement' as an 19* UeceVb:":2..§"e:» S sf
negetiatiens between _ .~€ij.em,..."'h§~'V._:'jébig ' Vééttjfemeﬁt
resuited, varieus  them.
It was aiiegegé  csmmenced
businesses   resulting in a
damage  f§ie"a;3pe$£ant was acting in
as 9pg3r$$§i%rs§  is; tha if'§EEf'€S€S 0? ihe

Cemgariy. L}'s*2.$Ae;< _:%:e;5é.. §§::ri'::ms:an=:es; Csmpangz Patétiar:

.%*«§§;;¢§?7ff;j"§8VE__iA§kx;*2':V§ §%:§§'é::§.....§es~::'e:'e Ehé Camgjany Law Baard!
 39?; 3% $2, 493 and 4% of me
  €@'§%:;%§:2::s*z'§eis   5;: %he :°'e3§§:"s§er:'£$; $é€§<i§"§g is
 '._'..4's'"'?i'.'E Sf£¥'§§.i.;E:: t.h%A:_a. §':§s5%aat ﬁram §f"¥§&E'f'9;f'§%'3g with E519: aeszézgai 0:'

L  and :3 fasiréisi :%':e aggﬁani émm éﬁéﬁg 3:23;

 iézissg which ﬁﬁiﬁéﬂﬁ bg ﬁr: cas":':s§e:éi%m déreéfziy $3"

f§°""""'



 

§¥'3ﬁ§%'§Ci§3£ with me bmginess a?' the cempaﬁyg :9 gestraiapthe

amseééani frgm aiaémmg 3:232 ﬁgézt or is dﬁ arsy  V.
Eadie smder the same and gtyfe sf ':3ﬁtraﬁ§ters"?.':§Etf1§éV§'ﬁgé 
irade mark gr as a ﬁat: sf a 
ta amemd the Artécteg cf Ass<3;iat%0;%3'«§:;::i§i

éirect !:he apgeﬂam: ta sen iféééﬁfg  in 'V

the sompany and ether»¢Qnseq.u'e:1f::ai'V'fe£§efs,A'A  »»»» 

3, The _§ppeH_ant:["_A:--..é.:;*§§§%edi" ,: '%§Vp'3*'éarance and
Ccntested    Law Board
{hereinafter     '  for short} by the
 the respandem: by
§§:'eCt:n§VV'LA't§f;_e"5&3pa_§<§§%:§;§':f'::%§_§é's»$amy ta gssschase the shares

§"3§§§ g;,~3;.. f:he'4"g;~;§§::'€%§Tan€' 6;? 5 fair marks: zzaéue to ﬁe

 d:e:§%%;éR1é::§  §";;.'_.'t!§e :u§:a::§utsry 3§.,§§§iGE"S G? thg aampany en

 shga: as 9:; 3i,3,i§§§ 352$ as:
  gzgcfé'~-:ﬁ%ei§vr%'ﬁ§'Ag%é§:%Gr}, the §"ES§%ﬁ§€§'§{ was gférsgied is gay
 »§:'a;r*::§§e:§ra:%,~'éaz*': ::s;%i%:§§2 6 magzihg §§'3§?'eE«%f:€§éa %g§:§e:;e§

A  Eé§%.vif'?:%2:.a§:*§e§, the regganéeai §'.38?Qi"$ 'EEQE C13; is én agégeaf,

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3; Sriﬁiaganaséég the leameci Serziar Ce»-amsei

aggsaring fer the a§g3e§§ar:i's caurzseé, gsﬁtendsm_§ii§§é': 4§':~§fVé'«V.
CLB failed ':9 foiiaw the weéi settied  M
gaverning the exercise cf juris-dL'iEt'tion'_ 

39?,/398 0f the Csmpanies Act. TJ%i.«a_1:;':*_ﬁ'é ;3<=é.1':vi_~_"v£_*::iA{b:'2';"2._ 

been fired by the majority be
dismissed an this gr0:.v:r:*:.d_. aiope'; V:..'V._:i""':. w2_a._s céjﬂtendgd that
urztii and zmiess aﬂ  3?? are
satisfied, me refjef:s;.;;_u£d;;"§égg:%{an§éQ :<§vih'f:%'V: respondent. it

is therefare ;::::"zff»§w.;-.'=, that the company is éiabie squitabie grounds.

Untﬁ 50 reiief comm be granted;

That 'ghere dVéadE'Q¢E<..."-SE: the affaérg 9? the cgmpanyg .."~.SV§ﬁCeV f'§3€ __:§f§i}E§%§i1%f;§'§!'§?:RT__..?:J§'} by the majezéiy ghare heidérs That the %"§§§§f ﬁaimed zmésr S§€'E§{)§"i:

3§?L',. .%.§V%'7a%§.V is £36 asvindéag :;§ (3? ﬁve €.ZGf?"°i§§§?'g' am ';«:;§f2ce §33\!€ §a§:": maﬁe 3:3: far winﬁirsg gm; :29 L 'isirzagig ﬁe §%'a§'§%%§. Thai the mm': §§S§§ fs? E338 ggarst §§5:§%é:f S}! the C28 agpears :3 be a férzéiség ihai $25 § § grérzcipées 9? garinershig are apgjiégabie is {ix}-.._:$* s'es§§nden*: cgmgargy, The finding 3? the CLB is V. That the §E"'§f'1C§§fES sf partnership are net case an hang. Hence; the CLB <:<:ws'*'r'&'t'z";§z"&c»%c.'-;~<:;"_4_'A.;§'r»j;v'."\éV§§.{:;;::'f§i';§C;.,.& V hoidiﬁg» That: EHEFE is me mat:-zréai establish 3 case sf appressédn=2jhd%>m%$%*n~a.ﬁag:ém}é';§'§;"fhat 'V snly because the campagfzy was' s e'§i"-A~a»vA":;ifferent Qroduct, the same woufdav§§av€§u.%§ I§;¢.:'ééﬁression. He further ccntensjsjﬁat agageiianfs shares ta unjust and hence énterfererzse gfeaﬁs that the apseai arder pagseﬁ by the C15 bé §e§ ::i:«S_§de._ E25; Ag.;.z':s;:2'<§ri sf $53 case; he miies egz ihe . §@§§s*§ar§::§: j'z;§_gme%%%;§.:.. _____ .. e ﬁrasga' 35;}? 2:3: ifaiéaga Tzgées iiaﬂ " _ ' :"'_;fg=;,}:5:::§I"§é§' 5;; 45;? 29% 35 £535; A' ;%§;_e}éa§'€ §;:a'a;s"f.r2'e3 fndia z;,§m;'€"§§ 5:23' Qthestsf aa . 1 ﬁégeéié §{?§"§,§;§§§"f§E:' ﬁiewey ffrzcfig) ifaidiagg igézééiea' am' $552955 :"8,£';?QI"f§{f 5;? $3.9; :§8f SS ,§3§3 3g ﬁanuman ﬁrasaa' Saga? vs, Sagress £55335 .9,zm:, reperfecf 5:; AIR 2032 SC 2425. 5! On the ether hand Sri.Poovaia_fjf_ %:h.e'L:Eéa%_%2é[d' Ceunsei appearing for the impugneci order. He contendsjhat §§1e:fe.»§s f}g:;',.1'g;»;f*"§.*':Q:"£'A.eii'£:}:§'£:éi'"' $3": facts as in éaw aemmitted Béaardf that Caifs fer am; §ntezf:i'.:;:;fen{:"e ,ﬂ 'x.%f;';%§f"-..gven'Vfﬁéﬁgh the respondent is a majcritg under Sectian 39? there is no prehibitiors a majority share hoider i;S..é§Vd grev%s%ons cf iawg He centands "=.;t§"§a':' ihe right Ea appiy zmder S;fec%ié'%:-V 315%-?_'§n:i_ 3'£~§ 8 Gf we Csmpames Act arsﬁ f'>','3.2«_S'.§:@£';'?v dV'€TV§;;§"€{".';""€V$ maintain a §ei:iti§:3a ﬁsaceg $33 V.V::.s;"%s«i:;ééf:"§éa§f:;v::}:§§ é;f%§ ;a§§eEiar2t éhgt 5 majaréty gézare §"§@§§€§' can.zéQf; §'§iev_&%'.v'V§--$%:§:%@n maﬁa; §€Cf§$F% 39?/39$ sf 'She éci is V"~__.4'_{:%T§f£;§3€$:§'E§:':':A'1.3f;::ﬁ €a§::'2§: E§ Sii§§§§§"E€€§;. Tihaé varimg . £':%%_:'*;.:f%§'a:§"§j%ca%;::;r:s ézgésg 563:": gigigé an reacwd iii Qréa: is "~ fT .___éét§'i§¥E£§"2 Ehe faéisé r*e§a%i9:3s§:§§ §ei2.A.2§ss": i'h% gartéag as weéi 55«*"""' ...1§..,¢ as acig gf §§;3§'ES3§$i"3 and mismanagement by?---éhe appeilant. Et Es Eherefsre evident that the inter§.§§§:'VL>"?'%:'»::f%'eV yespendent has been adverseéy effected due §FI'?iSSiGI"'t and commission by 'V Gtherwise, fghe appeliant througEf'*:'.V"%:t §V Commenced business of thé géiy SaV.!"i".v&E»";*Z%.,!ff:OV'£_'§L.£VV&€:3:":"}'VVVbéiﬂg V deait with by the [email protected]. Tm':ii:'§z's%'Va-»g3'peiia:h't'*2*a»£:'%*;er than performing étg duty, the competitars ﬁense a Case for ;::2:}'Vust and equétabie graunds,..ha3":'ﬁééV§'%I:55.e2~si:$'b%:§é?é'e:%*;V.~w-'éunder the faéta and C%rcun'zs:ifa n:e:s than winding as the csmganyg §:3*2§:_,a;g4V:':A2d'«.:é;'*:£':'cier has beer: gassed by ihé .....CLE,gé:h§:_%z E: ja3 s'i:'2:::;r::.:i_._.9;€g:.:§f:a§§e$ Far 5%: these reaséfza. {fig "._§;<<§§_é:'._:»i%& CLB is just, 'faif arsd :*ea§§2%3§§e and éaﬁzeéh':'z§:V.ééé--§'§'_j-§:%§= Vér":y éateffgrgaca ﬁscerééngéy, 32$ meaés f:§1a£: féiae. éggééé b& éégmigseé. Es: gugpagi 3? $125 case; he L V' 'éfe§§Ae'S"@;;% We faéigzzzzéfzg §%.i§§ﬁ'E€§'Y£Si %§§m,:W[ § W11» 5, if.S,3<'risi':naz? aim' Q€°??€£'S ax, W65? Fart Hi§f?:eCh Haspitai i"'€;§0i'f€€f £52 (2§§8} :42 Cam;§'V.{;._"§$e§ 235' {SC};

25 MSQC Radba 17,38; . L «. --. ..

3, Needle £ndustries.T'I;3dia £§.r;é£E:=9_§' 2%; Neédle Zadustries ?.sf§¥'7e>sr*s;/819*' " :"LfVf%'€!i;.§j3 ﬁoldingis Limited 5.55.. gtf?e£j5;-"';<.a{"§;;:>z5i;ie:'::;:f' f;2«',2i1".££w'iV498I SC 1298* ' . _ 'V

6. Hea.r::?«_..:¢.:;n§eisga5.ﬁ7d 5€><é¥"!:'Ti§i7§.{E';_§.f'*:§'3€ yecards. T71{a} that the resgondent hsidirsg éarmot maintain a petétiaﬁ wée: Ses:;':;'s,_{é Camganies xiii. %'§E sgatends {hat $§%'?Va'§§3;s%é£a"?;%-<;_:é'Vseeking 5 s"e§§€€ ea @§p2*&Ss§:>:2 aszé ~_ri:'§§s:7f:§é{:a§--é::3é':'2z:f 25:? anfy ﬁe ﬁieé by 5 mérmriétgz share b§§_é%e¥Ir__ :::é;*;:':'§9%"§§§§':§;'§':i§ agaéragt mg majssﬁigz $§'§8§"€ haééerg V V' _.aga%n 'stsz§:§'*:'é'§p:"eS.;»<;§e:'2 aaé mésmaaagémeai, Sinﬁa mg 4'"" "*;:§é,§s3[:%§_:y Vténimés the masggemeat 3?' time agmgaaﬁyg :23 §:%é£I:.%_%§':::":'_fe:' @§§re$$§$r"2 gag m%smanag$%:'2e§';i mdgz Secéiazé :'_4:3§"?!3§8 amid %%'a%:*€f§z"e Se maéaisénaé by a mgggérééy Sfééfé g;;m»~ Ramanar? 'A ihandrashekhar Rafa !3'.i'ffGii{7€'C}' E}: ~.i«E_£?§!8--7.:§'C? ...}_2...

émédegz Reiéance is giased an the aferesaéd juégementgg in supgort 9? his case.

{E3} Qn the either hand, the respQnde.r§;'s:':7{;§L:%;s-::>,§"

Centends that there is no prehiiqétiqrz §::'id§}4-.. ia25.%'5f9_tf* majerity shareholder is ma:n£a.§4_:: a §<;%§§t§<';r: LT;'r1B}ejrv4'_$eci§§eré 3?'?/3§8; That acts sf 0ppress£§i:...:fj'avue b éier?..VV:€:_:0 :rr':n:'niitte:§ by the minority, in as been cenferred with a fyfeto pAQ_w é_r..V the power senferred an in acts af Qppreggignf the i'€SDOF}d€ﬂtS;

{<:V) <.__ regpersdent an ﬁieedfe f;"?§:iSf;"'§€S §%::_:_'.?'3 aihers V1 ﬁfeeafie fndazsfrfes _:'éeyg§$:,;z§:A:{f§L¢if§§ Hé'§2;2';}i?i§s; Qmiésﬁ aim' sfhers regozfeé is? £555 '.§;§3;8:}V§*.5<:_ §;2}>«§ §'1$ €Qf'3*C€%"i{§ that is: {he gaéﬁ cage safer; peiitﬁgn wag féied ﬁr: the gmgmé 3%' '§i3§§?ES'iS§:Qf;§, 532% $35 g:'a:.m§$ wesé maée Gigi fa:

L §;:;¥:;é7r1%%s;€§1£e; avaa tééeugk me géiégéasé wag §'i§§e£§€§f rgiieef

-.is%;fa§si g ré:"'2t§§, "'§'§':e?efe:'e $26 re§$sn§er:i"s Cozmgéi éxteaég Wifm' .5913."

his aenxteyéiém $3; C$§"%§€F"%f3§§"'§§ :3 ihg extreme; Ehgt 3.2-se_n if the sompargy gaemion were is be aagecteé, a§eq:;é§::e"-%5fe%_§. §%? can stiﬁf be granted by the Cami.

(CE) in the case 9? Needieﬁ"Ingiﬁfaréies' t.h'e%é~~. fs;__V ﬁnding recarded by the saw-:.me 'm;~: th:aE §. 'ﬁeti§io§i under gectsen 397 couid only b'é"'fi:.{V§§d py'§'J;:§1§}§§%;tyVJfand mt by a majerity share hc:»§r3_é§§§<. ;;z'w<£3'»i.;iAt§<3z'2 was ultimately dismissged an smce what is 9? reievance §sg_"'tjPi'a§;*;:.1':V¥'2e.V:*;:ge'é§t'E.?$n :_'v~é§.'rioﬁjfiismissed on the ground that by the minsrity;

(é}.._ '-Sis» :<::%j%;*i:i%eLrV§:f:'g__V"'zifﬁe' varéezzs éeciséerss séﬁieé amen; E./vi:%7'V"'»--:;'g3sﬁ té'A._:§*:é:_".~"'Sé:::>ge Q? Seciém 39?,z"3§8, it ._.V.:A:@u§§§45:§%§:ér§e t'%*:'Eai.v:_?};e;re £3 ﬁe greﬁibétiem 2%: a majority "V_:s?:;a§V:"§?f3:e§:'§;e?'s<Aiaéwéfzéginiaéa such 3 getéiimx gay member 3? 5 29:;-g:%g«r;y :c>:a;§fé'§j;:;?§:*?:9é $¥aia'f: §f %§§§"€SSi&E"§ 3% $1? féza Cam'? %z'§€§'€ is ap:fn% %%:%zTa%: t§'"'i€§"€ is an §g§re§$%m is: any ¥"§"%€{'§'?b€§1 % '%faé.t§§:§§:'«-..§%§;§%: iZ§}€ ?;"v'§€'§§%§E§ 2:9 ihe {éﬁéﬁéﬁyg magéé saga suﬁ":

was ii; ?§3§§"?i<S fii: am aansééeya jiéﬁi araﬁ &§:.2§§fa%£e. :3T27.é:"~V

--ui€dsar §s'e«Ct¥Gf5:'-- 3978 aka, any '__'w§th"it as if} seam 39?. :-i<az.as;.é§é~s,:,g:~! a%'%%.}%sék;:tsen% ihemfaref Eﬁciiéf: 39:? ﬂees 133?: §{}S*£u.ia.i:& a é§ffes--:sa;:::e _i3*€::ween .§t%i--:9;'§:*:a§{3rity 3:35 a 'm£nz:{r--§£:::L..s¥7§;rg--i1'::>§;:§a§;;;':'jégéfgfV' r$'$mbe=?:.3f a ﬁsmgany amid C<3r3":¥'p'§a§n {iﬁdef éf' ';:ve:sA%i<ii.:A :z;§:*ri_p'i%;*§i_;2'Vv gm 1_?é1.g--a;'--d fire fh€'--m_¥smaaagemen't anéigfsfijsé;f:aui4:'%_1v%§:;:az;:.id "

' f'£:f_"._:.'esj_e. meimjﬁgrs; m:;c;:=%.;_ x///x//zza2 $.35"

Heme, we hsfé that ever: thmggh the res5ender§§;"'--§.§ a mirsarétyg they are entitfeé is mamtain 3 peti;i.é§;;':;*: }.:*;?fé;"§.iei'%<3 Sectéen 3915398. Under these circumstanCeS,':3«i§_ft}evLgrefjﬁéetﬁ by the respondent is maintainabte,-" ""

8.(a) It was further that the CLB Cemmétted anvegjror theﬂéﬁ:*'i:"s'<i§:pies of gartnership is the <:ase;'tﬁ:»_;_r:i' 'fifjhe (22.8 was 'Sharehofdergt Qmy because the partnersh.i.p...a;jV§*e%éh;;'?e:;:st. mm, it <::ann0i be hetd fhativighe are apmécabfe :9 the gage er: harA:5;..,.,_V . ' ' ,3, A gig} ?"f§é§'v.§he hazsﬁg. the res§9réﬁe;'2t's sﬁmseé £é>zf_z:'3e§fe$S ..?::§*:~2:;f:" égji:-:.__.%::'§'2e %;'§i'3f fééiiffﬁ sf the dgcuméaiaiian "<§8§1!'é'ér:'.§_3 %%§£;+::%§€';*9f%es and 32% mama? 32 whfaﬁ the bugéaess ...f'_jf - .%g"§§,e§z:g ﬁfiivfféﬁiiﬁiéﬁ, éaaﬁs ta ﬁnfy me £9§::%a;s§a€; ihgt éhé A ";":;a§';":js.%;s~.%§;_A.é%§2re§r2g cméacieé, 0;'? the pr'§r:€§§§es Q?" §a:*§n§:'§hi§z ' " ,""--%'7%::a §i:_é§:%;&re was a xzgrgs ﬂeas" sméeastaniéng %€t::veer; mg? 9? Qmsﬁj/5 Q€9»>Ww4«<um ,..,_M......e.m«;/~ 41/////////// Jhaﬁa, them? ihai th_e.§$=§'e'§3ia:3: a'_£?:S in fféf'e":'::a't£3.:+;e 153? ihe gazfgizer by giving ms te:£?§.=§":_ici;s'£.§<:°:m%s'__ff;§%3*§}*s.r i:'¥"'::e; --ce--:*':'§.§;a;.'.:f:--*::$; "- ;§7§£:;§'éi % the Qmaimriaé 9.3% :§;:::'r:¥ e:£é.a*r%é,«' es'*ca.b'f¥:she'$"thé_ E ' §r§r:aci--;':§~ies' {if gaf;~*:--:3ers¥*:'i*p 'am 'é--p;§§ri§z:.23§--¥.e' t}:_:> £:a--$'e'--1':3:*%\ ({':j ' "me (21.3 'heid that but rifieé pa?:%tf:&rsh'i;51--:._t_TE*3j;:»:t2g§;;;ée:§. 7 §--£3=3§ﬁY rm.

p'%Gx:i:I;e ' teghmlaé :=nal'9?¢«s-=3 15% samggrsy, §?C?i/Eféifé!' smaff, hawever.----._ ﬁamesfic, 15$ 5 campany £335 3 parmsrsfzija A even 3 <;uas;'~;3artnersf'2;}9 and if is fi2roug{!j"{féé".V:-

jU.E3i° and equitabie Clause that ab(§gg%}t§Qn;§3'~ % 'T Camman is partnership reiatz}3ns,---£27a;'f' cQ.V5'éLéV:»f;:V.V': XXXX XXXX In the C355; GI' 'Vféfﬁify sompanies, the :é{.z"1*fsf '3,§;3.?.ied the dissaiufian .~..0f ;9:.«E3'i"i':'?'9)'jSfV?i};1_'»,1 where shareh9icf!§'g;;:..1'a re }.2fz0i~je'";3r }e§s"xé'c;az&§/ and there is ou3t!k§gv :f::9ii" but from bezf2s>.ﬁt'§ 1s;i;-::§€eh'é?déf§; ?--"h.e:~: fearn eﬁ Camgany juéffgejmas unabie ta hofd that €Gr??,§é:'z?:'?}*" égacf §a;2e, Bcwevégz 51:2. :f3s «3p,':2"eaf, if wgs rezxersea' 3:23' . ':§;gfI2§2'::§~g§ "-wa;>2;;s__H .ﬂf§€f€§. E325 maééer was $f§§ §i£§:'"€;'Z'?€ Casrf. ﬁffgr ;*efe;';":';2g Se (3972; 2 £2; 5% 4%; (2923;

.'§f{55§?.;_3§2a' 3539 Yemﬁjg Taéggsa Sé, Léaiig }:3£:esé{:§:5} 2 an 425 55,4; am gm: gases; ..:"f2e'V"'S;,:,§re;?7e C9355 fzieia' as faffegszss 55:? ggge ' * ..._3j}*:}4 S? 45 Csmgé :i"5§§): X,§'}{,3{.,s gm' #18"

;{XXXsr:

In 5 givez? 2:535 the prsncipies dissofufim afpartnership may appiy the apparent structure of the compa;2;5' E$..g?;%§.if:' the real' structure and on piefr&ihg« vei! T{f«!s L. feumii that in reafity If is 3 pafénekférzgp. "

XXXX, "

{e} In the ﬁght.» and in the fasts 6%' this case; it ca f1_ tha': the princépies af the Case on hand; That placed to establish the same; """ ' {E} , between the gariies _§;G::srr§.»e.i»:::§§§§E aégitﬁl'%§'2é....'?7E§,=<:hnEca3 CGf§3§3*GF3ii§§'§ Exgresmeﬁtf v}.;*§--s;:t; i;a%.V:A__ <V>a':v'.%;&£f&'%3._nagfeemeni a krzew hmsx; fag m' 3?'? ta ihe asgsfésrét in %'8Eé§£"?'% far tecmésgé V':>;33§sté.§;%%L'§}"§.;%i?§;'%§<:a§ mfermaiien %: Ehe :'::am:f&£t:z;*e Q?' Véfiiergjfiuié weceggirzg 53;; "§'§*'2§:'§a?é§2r {hey =e[§s3%{éf;jéjé'A%;sic 5 'S%:3re%2§¥§e:s P§§'§Z{E€§'S§"§§§ ggyeeméat' Q32 %»W I///////444 .,,.}_§g..

zashigh ihe agggeiéarét was E3 S1,%5f*SCi'§5;?€ m a 269.z'»:y.:-égffxare haidingg It is therefore apparent that a re%at.§M0':*§§§;:.§:gif§'.:53V. gartners was barn first It thereafter cuimEs§§12:e:§:é:V§:f%L{é shareholaerg right by a --:T':hé'--; understanding, abject and the inception onwards, was thaf-.§f"..V_a 5354':meF'-33%}:i:;3.VV"*-:TF::'rifher 'V more, the shareheEde;i;s §ar§r2e--:;§Ej--§.§"'~-»a_gre'é'me*--nt»A"éntereci into between them; evidéhcés fi?e,§V:'iv{ité%:I'€é_C%%.éfﬂthé mrties ts carry on the §uvs§_:je$S same manner as that of a ef agreements aiso adds meféa.n.ing:"'i:<:{1ti'é*:3:A._§:zarff:ershéjp----vs'e3étienshigg {Q} '"}'--'.§:.ere§i<5:*s',2'§:V?ie.:_€:9mpany can ba heﬁﬁ ta be in __é?1e gzsigé ?fa:'-"fa p$?t'm=:,r_$_§f2.%v;§. Eva": témaggix if £3 a éomgagzy 52% "'v§§a.s:;g;«V%:_»V' §:~.%:_ s?,:§'§4§..:V&"av_§artn€rs§:§§§ '%"%:e reaf §t:m::::;:e af the C$§;<:;¢:&«s%yvV'§'§§--é;%;%3A%I=§sie $3 $23? gf 3 psriﬁerghégé The ﬁnéészg 3? théliéfié %;€"%a§%§ing ma: the €C%¥"§';§&?i';f is saeihirég East g __ §'§g§f%§§§§; ésﬁifzershég béiiwegfé we §}8§'"5:§€$; is gag: amﬁ @g:m.;§:.A Féenseg izhe §:':'nc§§§&s 9;' ﬁiggeagéigiz £3? garinerghia a?é»:.:°'"*W% mzﬁw as awéied $3; me CLB§, is jug: ané reasonabie am :A§3...find as graaind Ea interfere with the game. mismanagement; It is further.4__:ontén1_$§ed} VS§'f;at'é hoiders agreement having camé'}'ié a--ﬁVVen§i;'3:56"L'ép;ie§!ant is net bound by the sam'e;__';:g&;aa .':i91ei.§.As"' to carry on a rivat business.

Reiiangrs' 0::f:..__ th.e:_ j«?,_Jd:'§jment of S/vanti Prasaa' Jam vs. L*£*:tj,'-._$9e,:c3:a t;*£s2:f£ in AIR was SC 25:35 whereiniihe=S:,sg;€:9é§'e €;<3§i§t._:§ie{'d"at paras :8; 3:§ and 26 as aﬁden V ":8, ;E';?..§5;'§;i;?2erf§ Case, 39586 éiis' 5:9; .§%;%'§.:§ heia' éﬁaé "::'2e wag §9§p:'e§3;'::s"

3':i;?é§.éf'-§%.;2;*%i¢é§§;:?s, hargié 32:59' mirs;'2gf:;§'i 2% wag .' §?;é§§ i§:?z[f§f "i:f2a S€€Z§"f§f? 553%? 3&5 ﬁélfﬁéfi 53 §§;g.f;z':" :f§ éve;'y £353 5;? ymicfy she fads wgagiﬁ '*.._§:;$€§f}i"'f;'?§ maéérzg @f a :x:zi;:§§;';g {£3 Qfﬁéf' 55555:' fjzggi" argﬁ sqgzgéégéfs 5:153; bag? mfg éa éf2§5§ ' '@3355 $2' 2:533? gbargcésr wﬁigf: have 5:; 356:3 She 5"

% WI)V'"x$$°,~v4 R' «x M-...m.. ._ .321", reereieﬁée efemere? ef ep;:¥eesiee'i E2? was eise.----._ ﬁeief ﬁre: "Eire reselt ef epeiicetieee erzder 3,23% ﬁe differeet eesee must depend en the ,eert(e::!fe:i.'_'_V--'..:_ :7 feces as' each case, the C1}'"'CUf??Sf8!?C€S " % >T < eppressiee may arise being se.:ir'rﬁ.r?{tef§}' :»fe;§f}e{:j::VV: A that ii £5 impessible 2:9 e'e.,f;'ne_""e preeisien "1 The circumstenees rzéusf'»be .3"; re warrant the inference tf:«3:f'~%."tbefe'*».%zée' .}:'3ee};2, at feast, an Lmfaizj. .ebuse--------e.é'__«;§e:@{ers "ez'ze'»~»a}1 impairment of e01éfieféL»;2ce__52:3';€i§eV_:"e;§fa;bify with which the con7pany's__;3fffairs:v'ere bei;§§;~1'..:oﬁducted es diefingaggekféeci. free? ;:v.ere'44.;%eéenifz2Téhf en the part of 5 ,__é_§eir;g"'e1:z£2(c'£ee' on some issue evﬁ. The ehrase "0pp§feee.fék'eL,:'_.,i"eV ef' the members"

s:;gg}7e,e€e4_éféef eee_e_f'e::§..'.:empfeieed of "sheez'e' at fee }E:2._:;:?ee€ }m2e.{:fe..._e :/isibfe deperiure free'; see' s:§ee'er"'*;:_ fez}? deeifeg, eee' e véeieffee es' " A see' eeeefiéiene efmfeér piey en %=%i'f?iCf7 every ef';ere« .~.~'f§e£:je;<4;éév5?e.V:ee§ree§s his meeey ﬁe e cemeeey £5 . ree.S:ii:?ee"u."_'g:'*e 'e:= Eeig/.,,8:;§, eyes": free? 53155, fee eeeeéfee -ef' eeeeeee sf xeeéeei ceeﬁdeeee gee Se __ eetz:2?e_;ee eerfeers, es' eeiszveee éwe eete ef sf*2ere~ A CT Aj§e;~'E§e{e, eeseeees, feieveef ﬁe e eiéeéfeg ye % 'eeeeéee Se Etresxe :29 eiseeé eeieveeee Se sffre " v----~}*emee'y greeiee 5;! S,2;f:'Z 33 5e eeereeeferz es' ewe"

. . W.m... H144»/x///////((( egg."

same eerz' ef {ﬁe ef}are~heIe'ere by the manner 5;"; _ Wiﬁéfi fhe affeirs ef' the CQ!T};:?3i?}/' are Cencfuctee' that must be eve/Tea' and Mere £055 cxf Conﬁdence or pure dead/ask': " [ not creme within 5.220, We conﬁdence between shere~/7o?:,2fer::§[,::ker75e"' zffgaf' brings Suzie into ,0/ey, ,f}£;f4f_' iacf%A..e%' €:Gf1'ff&1;€:5Z?C53 -5 springing fmm eppressioré"""eef»e mif7a_tffy'Ve':by1"%§e majerzty in the men.egem.er2é-A. ffiie eez2§;§E;*2?'}}"s affairs, and 0ppre$§}§1tz_ feast an element as' iagrk of voAr:.,,_Vfé}5?v; to e memeer :3. z:~'7_e;1'maz}:erg hie.:;e}5ee.riefary rights as as share he/é}'er§--_V 1'9;*~ ~T.:*V_.7'7q_e}::e ' "Q%5SEffl'e'}Cf0ﬂS frem the fear eeeeéweferfedf §'e,epi;x ea 5, 39? efee which ie"'*ei;'nesi {i?A'£}5E«...§;:ai??€ werds as 5, 239 ef size :E';2g!;'5b $252: iene' {ﬁe eeeeiiee fr; eeef? eese is ;»i%f2.effze*f§?:e eeeeaet ef fee effezlre ef e eemeeey V§f2'e4,_{:§ej;3efz;i:; sbereheféers wee efeereeeia/e ee eé§;"s--eg"é§:f%§5 ehezefzeéeere eee' fee? éeeeeee egeesf; 2:"??e'v'f'ee€s erevee :55; e eerééeefer eeeee es .335 eggfeeéy eeesfz ieefeeéee; £5 se me: eeeegrgfiz ﬁe 35???? efzez" éfieze £3 jeee eee' eeeiéeefe €§éiS§ fer 'ezfeeﬁeg we §5?€ eeeaeeey, feeegi? iﬁeé zeeei be

-"~':~:*;f§e:r;i;2 ee §:"€§§z"E"?§fE§?jv' Se She eeefieeifee er' 3, ~23"

«/"// 3§7: 5: muse ferfﬁer be ehewe the: the ee::cfz,ze£j-- ef fee majerity' sfrereheleers was e,e;:>z"essi:sej§t:;=--. the mieerify es memeers and this require$;'_:'if7faei*.'_V:- -3' events have to be considered not in fsefeffeié. »[ as a pen' 0;' e consecutfve steVr;%;"'?ZfveAre_ :?7_:e.§:*:' centinuoue acts on the par?'-:.&ef;'_":%~2e };?¢%§'je:2fi:;{ ': "~ sharehoiders, eentinuing; ».._;;1pteV .33 peiitjen, shewing that the e'ff:ei:s ef ff;e_'eee§pe}:gy were being cenducteel in 5,Ai:«'}a.fj;?ef~e,epreésive'fe some part of the Vme£n.be.»fs,{.,'T/'}e--V.':gQ}#d;;C€ mus? be burdensome, hafg/_? _and'V._V§1;gf0»'§§}'fL!i'~.%3;*}0' mere lack ef ;:e'ef:'§,f'ené?_e a majority 5/7eref7o{:fe:r5.;__V 5:3-:-1'r};1'_ ' shareholders woufdw ne,;'::?=--z;ée__ _e';9._2_::*;z{;7'i§ the iack ef €ﬂ;7A:fE[;d$}?':'¢xE ;%ef;%,V_eﬁeressiee of a minority ey }2?ejeri;::2'.":'n..'~-management ef fee eee?pee';'<fe% effei:si;._V eee sea'? eeereesiee mes:

E;:egre'f:xe eé' ieeéfé Se e;'ee7e;::£' ef' feeié ef preeféy er " V' A éfeeikeg ﬁe eWe':emeer in fee maize?' ef his ;§fC*§§§§€£:f}'..:§'?§ff?f$ ee e eherefzefeegn E: ﬁe ﬁe fee H '-- egféz ef sgyrinegefee fee? We ﬁeve ée eeeeider s?§ée>fe.eée'v:?:2 mfg siege aeiéf? refereeee :e 5: 39:71. XXXXXXX XXXXXXX XXXXXXX 2 3 WWW Mt...

xzxx»xmw~«-W xx/////anI .,.._.».;.Wym»«~= ...24.,,.

25. £5 55 ffiié' 177523 by 5&8 begfnnfﬁg 2958 there were differermes between E?z'_?7e:?--v apgeilarzt and we Patnaik am' Laga§:s§_f}é"a§é.'_.j :,'._f i-2 . gm:/;:::s and there was 1055 Q2' :_ between them, But" mere fgriéé"ofé_c'QnZ?d}5hC:3 I between these groups cf shaffe ;?f§'c>f;f2'ez{s;~. mt some within 339?' ugéfgss if '$[7o»::g§A"A:fg'¢.,§z:VVV .5 this lack af conﬁdence spf::w{g» frcnfa. :i'es:ire ':j°0 opgress €226 mfnQr£:;z{..in a'i;e"":V2:.>§:3;?¢§§:e3{22e;§f'égffffe Campanj/3 affairg éizc}€23zi_t{?,é;"é?""s§k$.séV:af_{east an e/emenf of iagfk of grialtéify féir: to a member i;2:..§z*§:é:V;f'r?az"iéer aE.his",é:fﬁ>f§;:ie_iééry right as 3 s;zare~f?':;1z;'s??*§\,.Z%A.:;{_ % % Re§:E"aij":€:é' Es .;ﬁfV§szT%;}ra%§i"e.§f§""i'£é%ea'ie Enﬁgzsfrieg {éndiaj Léé. 25$ Needfe '}':;.:f:,:5.2f:f;1§--:§ A";5Jé%é$'y gfnﬁigj Haidfng L532 aim' £3981' EC i.2'§8, wherein it was had _ 'f§§'; ?..:_»§}%gi§nQ' gfter we éecégieﬁ s22" {ﬁe f~..§;s:g$'éé§";sra'5 :12? Meyer {'E§*59} 2? £:§§"3'?§ C35 'v. §'§f;:} 5 regirécfea' fﬁﬁafﬁféfﬁffﬁf? 5:35' §§§§? giééiei? is §,2§ﬂ 3;»! Sfse Csasri' $9' épgési 5}'? ' .,?§::s:r23/2; Séreéi ?"uur!<f£!: 3§i"??5 ifaif £5; 5% §',§§?3} :W""

%/ ., /////z44w M25."

3 xiii'; ER 28$.' 4'1 Camgz C83 999 Whieifb been as':/erseiy srificised ﬂy writers: --I£:§:*3:

Campaay {aw [see Paimeﬁs Company L§v§§,;'_:&2§'mé'f'_\:-

Ea'n., p. 513, ,-Qaras, 5,105,, 57»0,; 4'a;gr;;T.g« VT Brawne an Companies, 435':

12). In India, this restricfivé.dexéfeﬂﬁpmefﬁtffasé" :"'«.:1 rm pface, far, in Shant!.['P§asad";A?,:»§f:? v.

Tubes Ltd. 51 965) 2 SCR'vff2§, ;?3;:{;.%,"4i'I;2»%%z§55 3:: 1535; 35 comp 35té';"""*36;7.

Wanchoa J. acgépféédi '23f:e§.»'§'7r:é'a :.}'-- iibera! inferpretatign given i.;:0i)r:" 3"V'-.-g:2"J'wers in Meyer. 3 .

:7" ~ ac' J. referred to Certainv 02' the Engiisf} Meyer and Qbserx/ed """~'.%T'_}{?é.f:sfe'x;2§:s'ef:»;;%.}§f0;? from {he fgur <:as€s' Vzgfexééa' 'fat' é§@e: agpggigx :3 S§C§°iQf? 39? 553::

"v»:':§§7i:*?:» fﬁaimasé 2:": me same awrﬁg .35 5853505? :. §'§':,;% 'frzgfisf? A53; ﬁﬁé She gasgséfw 25:2 . r é§:f,"f2' :*é;:;°-e VA'5§V whgéber $525 Cagégzcé 52?' {ﬁe affairs ':';~f af ::*c;:':'%,3§;7;2 éy £755 mgjgrify gharehsfgjers A v;!3?sv.._.§$?;§,3re3s;'v§ is 52% méaarify gharefgsiﬁers 5&5: §€;}§,='?§S :,.;,:3a:2 SE25 fgcég §2"'§i«"€§ 52%: § t;;53}%§§z::sfar gage, $5 5333 §ire§§'y men izﬂfcsieﬁ, :2' 35 rm: éﬁezsgf'? {Q sfzgmz' 2555:' fﬁgre és 33$: gag' a£g:Ww--

I/x//////za mggm eguitsbie Cause far Wii?a'i;?§ :45? the €ompar;;4_~"*-.» thcrajgf: éhaf must be showy: as greiiminary five appiicatian of section 39?'; It must 1' be shown that the mnducf af 'T sfzarehaiders was appressive:-£'C>"'i'i7e ;r:'{n0ﬁ¥fy:v 3; ' members and this requires that f2e'§'vé'V be cmsidereo' not in isowiatign bi}:V_;§$° 3 mnsecutive story, Theré"»4{fiegIst bé"'€:§f7z"ik§uc;§:;s acts an the part gczfthe {naj(5{?--'t§Q?"-vsbarefébideréf continuing up to date ﬁiéiﬁﬁffiﬁé. givowing that the affairs eff c:ﬁ: 7:;;ra'}§}{ being C9f?G'UCi'6'{ii 'gs ;2 .7_'an;2s§.2* :0 some part of ~£;'%e__ must be burden§@5:§:e,1'V.:_;:,{7a}':§ﬁ' :§;é¢;'.. §};(;fQ2§2gfuI and mere Eacé . pefv_2'een the majority gbéfgfi e_fa'ér3: ' V . E--z7ir23rfi:*}r sharehoidsfs a!:Ia:;fa' -z7§:0*€.. 53 zmiess the Jack $3' :g3??;i':§e:3Ce" A...;s}97,.?;';§g.:=; fig')??? §§;3i'€S,S§C?:'? 9f 5 ' V' A ";*;f;§E;';%{.%i;':ii;?*..§:§; 3 :%;§éj"6:*§fy is size :'?"?§z?§§€{??Ef?%."' cf f::":=§ '*--:j1<:¥;":é;gz:i§;f:;§f'i§ affairs, 3&5 Séiﬁf? §§,§f"€§S;'E3;'? = A §r::;§:9 '£3i%;*a»5§T%/fie gt' £5355 3;? eieménf 92' faak af ﬁsﬂebzégér =:':7:r E55? éesfizgg 5% § meméer 5;? 5326 mafia?' sf $33 ﬁ§"0§fZ?€38£'}" righfs £3 3 A. :.§§3*:3ref?§!§'e:*. 55 5g 5;? 551% iégfzf ef' Efaesg §§*§:2£i,§!:3§ 5&5? we £23225 :9 csﬁgidar €38 535:3 ,,,,,, ,, W35}? §"€fC€f'§£?£§ E0 §ecz:@;: .3'§7. /////////(((( .M.,,g'7.¢ .><X;<i><'X;<§<"

Reiiance is pfaceci GR Hangman Pra5aQf'""§3g_;és.'.':_ i}'5:.V M. wherein it has been held as under:';__ "Section 397(2) c3f».§f3e ,4z;z~_%;:;.»av;g:--'¢¢:4$1 an order maid be ma't:1~:=:' "as ajj'*».:;;p';:;,!}Caz;)g2;3 made yrzder sub} ,sectio1jz-'{',Z;i'__ ,-'f"£:ﬁ_¢ cQﬂi1fi"*A'AisA" af the opinion {1} affairs are being condgzcted j{nV_ ';;~._rr}ém:.{7ei}f"'wéjainficiai to pubfic 0r1__ in; Qfibressive Qf any (2) that the facifg cf a winding up @i: é'erH ' {bar If was just and éqvisitébfe' :b3E'V':_£ff;év«.g§é,:r}£2any shaufa' E5 ézzxgasna' asp, a'§2:f_ §'3k)_ L"!_?é:"._ winding aw Qrﬁer waasfﬁ _;;:?'fca{rfy ,§:'s.g' ;§5'f€s: 5:23 ggagficantsg 5% {E8353 "'a:9'5}§é}<s?§A~.«_fe b5er2 :':?§a'§ 9:}? ifﬁaf tbs A, 'gaffairs 3:5 Sefag «:§;'z§'a:;::'f§§ 5;": 3 H '-- ';":*':5}é:2§.%.3jg §§é.:§;:2a*i€éa§ ﬁg gzgﬁfic §f?§€f"§§€" 9: if? 3 "';*2';§;f:$3'e;r*--"'; épgrsgséve af 3523; mﬁmbér gr' __ AA Tmjémfﬁers, ?"_?:§ref§re, 32% ﬁazie fa gay aw é':ri$z2z";&;:: aniy fa éfse aggsgé 5&3: §"§?€ %,r:::iz2g'i;*:g 5,5,3 92' {he £Q!}'i§§;'?§/ wsazicsf assgfairiy grejasﬁice 559 > meméezs af zﬁsﬁs cs;?';p§;;y wfya ﬁrs;/e 5526

-§<1% .

%%:/,3 §«~=»v»«»m...,,A 5agre3s Cereab PJ.ta',, reported in AIR 6;" "= W « ,, . g§;:i§£'§3ﬁt;

$.23".

grievanse arm' are me appiicaais befere i"f:i3 "'-._ caurz' grid that Qtherwise the facts :4/Quid just{f;¥ the making of a winding up order ~'-' ground that it was just and equitable campany shouid be wouid agar; "" "z'r9&<;>r';1e::«_t§ L. successful on this graund, fife.Apeéﬁ'/ffbnéigi-§i)'2;§fvv/.§V" "' to make out a case winﬁiggj' ;1p:';§'%"I;é*,¥7gH .5 Cempany on just and equiZ*a]§fe_Vgro':ii?.z§'é;'T -{If figs facts fail shoré sf {ﬁre C4356" .é'u2'; for Aw'/i2a'ihg up on just and e2.:j£;,i1£a:§/e--. gzffrjg/f§€3i%':A';*3:g:5 5:?/ief can be granted :0 z'he_AVp_é:i!:io}ﬁ£::}5. ".i"':;>V;i*~.'.iJg/fise ether hand §he . ré%$is:ir.§§7 up can demon.§tf3fe t{2.:§}e._V_3}je""..k;eifher just mar equitalﬁ/e_§:a*':,;:{2d§§ f£3.rf ;z§'{2:cf}%(7gV and an arder fail'§?Qi2§i:'ii':{£;_.._;:p';V'3: 't_;njust and unfair ta éhéfng " . Q,r:. me Qivisfieg? 5€i'E€f? €X5f?'?;'}':':E G' ff?;% ;??§A5§é;*..f;'ief0re it; >§§<X;<,:§X" V' l :*z2%§'is'%;:_{gC§:;':'. iéseae §Q€§S§{'é§2S it is carzteézdéé $1.; 3:8 " 7'. é:fé:[2V_"é;e-,=§.:?i_er §:;*§:*es§§Q§: 35 mégmarzagemeﬁi,

-'ﬁe 5523 is? the aggeiiaai vasatufé mt amgami E $23., ($3 ﬁn téze csther ham Sréﬁajjan ?eQvaia%_:;--.._>the éeamed Csungeé agpearirzg fer the res;;e:mdent,.Ws%}'§e§${;.;§:2V the judgmen: 5%"? :ziS,i<rishr23n and others Hfghtech Hejspifaf reported in (200g€s')"";2'4,2 {SC}, wherein the Hon'b§e Supremé'A1f:o:c:ftA'hefd';a'$'~fr;i!0'i;§{?3:.. "

"In 3 number Qf» cfonsiderecf in extensa :';'_?Hé} :sc§oA;t3_»e of "sec_:iQ.%§s 397 and 398. Tbé"'~fol/c--§}zvi{2,§z"'j$1;:'§ﬁ,§i2?§nts coula' be usefuiiy referredfo-.;'V_ I {a} Lid. V, Needle ;"2!_e1vz{:§y .;§{I}ydia ' "iv-Qaiafing Ltd. (1981 V * " .1; ix', Kerafa Ka%;.;;m;a; P;é;:§%;; :'2§§:2:§}% $55 294 'A '£?3!é'.§§z?r£f'fCié%%r§;3g€on ff'fV§: 9,555,, ax. ,&;,;<,: §ra§5§;§§;?~ {2§§5,% .2 35: 2:2? §éBQ;'3m3£;2f? P:§3e.»*'<:«:zas' 2»:

--».§ ?:gs§§i*§a*s§Aéf:* 9. Gaeézzvaﬁ 52885} :3: 5g: 3; 4; i.[':;"§€fa;??§§ X53225; 35.5553 2»: ﬁuéy " %<,:e;;g;:s§%%;éajaTspssa; ifai, {2§§5} ? 3:2: 533, Ffﬁfﬁ 229%' aémze cjeaésfazs, 2:' 33 55%;" 52%;? "s§§fe§s;@:*3 wayiaf ﬁe {?'3§§e ﬁgs: =..3gw.

{5} where She gondzzcf is bzxrdenwme am? wrcmg {b} where the Canduczf is mafa is for a Caifateral purpose where a!£h_Q;;;jf:..Vfi7§s%:' "

ultimate objective may be ;'n:£'h'é';':3t¢r'sst; 0_f i;5e _ ' CGf?7P8!?}".« the immediate purgzzoséj' wisuizf f?ar5f?,,_--

in an advantage far s0;??e.§_shaf§eA.f§é.'::{er;:' {?£§«é:W .5

2./is the silvers, _ _ A 5 (C) The acztfoﬁ is-"a'g§}§;§ﬁ§t._pro1§?t}2*"'*atkéca' geod conduct, V , ' __ _ (cf) 7_"he oppréssivé. ;§»§:t".i'CQff2§2i'éined of may bé v ;9err§i2issit5.fé ..!a.{%/ bu!' may yet be we test as fa whe_:f?er:~. :::>r nszf is net baféed V .i e_ga;'.'y permissibie er r2a=f"L'-.s;'}?.cs' esf&f%}f'j~ .f?"~5§§'S§;*y §ermissz'b!e_, if 359 aéfiarg .;22:;!*:.ef3;*;é:{iSa:'2.@."-7*' against pmbify, gsaé §.;95r?:;':.;Cf ai*";':5.._§f§:;ra'éf?3@;?2€,. harsh Q!' wrasg 3:' I5 V"A»f!ﬁ';:%A_9r far 3 caiigéerai ;'L3:f}i'§§58§ if gxaigsfa' 5'%;?3$::.{,:%si< :'::_v:;;.:55ressia;3 £,:'§?ﬁ€:" gggréiagg 39?' and ~--A'3%93, ' % {g:;=' $51355 5523572253 51$ :'"Qs,;s?5§ ﬁg $5 ._ ;3§;§;:+¢,.a§§;:z§ asrséer S§£"§§§f?S 3??' arm' 3983 {#28 " , _G§';§?€§5éf§:?§;';«' gawer gizxeﬁ 5:'; {$3 §':@;??,§a:?;x Law gaard usﬁer sscfﬁeﬂ gm 59 get régﬁi, f€i??8§}X '[ $5" ggié 5:? 333$ 56 Sam'? §;f}§f"§S5§Qs'§ 53 very aagiafeg «,,.a //////// «.31..

{f} A3 50 what are facts whfcia weuicj give rise to er consiimte opgressian is basicaifyié 3 quesfim 9:' face.' and, therefore, whe€f:.s§}"8'ré.'_,j'j-.. . act is eppressive 0!' net .. _ ' ' "

fundamenfaiiy/basicra//y a c;:u§:~§fic:r;.e:jf'_fac:*.' L. XXXXX"

Refiance is giaced an MED Chandrashekbar Raja ;i*6';€}f_OFt:{:*{f}"' §§"%':'jgéifg-..20G8V"A'éif 1738, wherein the i-farfbie Supréﬁﬁf févliows:

"Se:c:*:fis*::{7V'j'398a__0fgfﬁé /2c:p£owid;es for ﬁiing of an :_. "'c3",'l')',()/!;€§E}".'1:V'5'rf;').1Vf3"-:_ ff.f§?'~.__f;i:;%/fE'fS.-- in cases of mi5man:?'géml<;§'{2t. .' iv :;eg:z¢:;'ig<%Q2TJ §i'::?§}?i;¥e.é far 5&5 gawerg sf éhs {Z:>,;r:,3az?§: E333: _§§::;3rc! as; an agpfigafiaz? made :;;§:is;f'secz;;:;: 397 9;" 393 cf éhs As:

A §:2;fua'é§""E:f'2é gewer E3 3355 5:2}: Qfﬁéf V A.;;;fg;:z§:f:i£§§MV '?%:: ffae pzgrcfrrase sf fhe sﬁazeg $2' :§;f"é:%;~* :'?'S€:*'?2b§;" 6.? Sim €9i'?'?§§f?}! 5:; A' a;§bsg?~m§%§€§er {3} iﬁéfééf iii" éy {ﬁe €Gf??'£}§!?}£ §i"€f§fZ%§F5;'}', §Z«'?Ef"§§€Sf'"S, 52:: 3 case i*%!f'?S€'§ 5 * -552? $3" epgreggim £253 5€8!? maﬁa a grgagzmf :59? ﬁe ,§iii"',§QS$ §f iﬁvgkiﬁg 53% j:;;r;.§a'i€§£§;? af fflé ._-_A#.,a»,a/Aagxevaw W32"

Saga?' ii'? terms 5:?" sections 39.7 am)' 398 sf §!2e "= 236:, a fi;3a';'r3g sf féci' ta {ﬂat effect wsazia' necessary is be arrived' cut. Bug.

jurisdiction of five Company Law Saard " 'T § 317? ether or further order if? Zéﬁé '£r.>t¢r§:3sz', o§" £'§5:_:= ' 57' Campany; if it is of the opiniézn, would protect the interégi. of Z°}';;: 'Ci?»;77;;:;fa%}§§;:; f§V41 ft:

wauid mt be pa wen/ass, j;1ris¢iic£i:o?r'; g:f ﬁgs Company Law Baarjd in_..Aif2éif:'--r'é'g;3{ra' r§é':1s't';AI§4e held {*3 be exiSz*irii}rT..,i7';.=z_:/;§r?_;;? '2iég.;§f;:I'_V re the aforemenffoxjzed V' '1-rcggardé' conduct of the been noticed byiffié aoaraas also the High Cdv:§;'§,'-- !:.?'i'3» fact {hat ffvere are Q:2:';r é'~%x§{'<7- shé;"eﬁ{:;d§f§ 'and {W0 dfrectarg §f'%§ é.fZ*.{'e{.s?e§: w.. {':%§:?§:':§' éregt :15: éhgﬁr §€fS§:"?3§ %,':;'f€*!a;»fi;G:;s{?f,3, V §"?'é""§§me, in 9:21" Qﬁiffiéfz, wiii ';:;?€::"'€z::' fmgggf Qf? €375 maria? 3? C§f?§{f€§ A 52% €Qf??§§!?ffL I v ,~*:.§/;gv",__.%;.f;%::',><z'i'§' {'22.} E: 5 §é£§"€§'"%€¥' asaiaméaé ﬁg' €339 §"$§j§{T,%E'i§€§?'sZ' aha:

-%.hé '§.é:* §s:;§ agis éf thé a§§eI!ar2€ véaiiéé éemeagiraie the .r"' H33"

5635 fed»: in the Csmpany. The apgeﬁant has fa§_§?e.s:§ :3 gerfarm hig €Z§&}t§ES {awards the csmparzy, Ther§fé:'s%'e";V. zhe majeréty herein that has become the 09Dré'§Se.5'['V55/?":»§rzé1."j mmergtyé """

{d} To support his casegche z*é3s;§L»rr>de:aVE:"é%§£§:éVsVVu:}:>ah various cgmmunicatiens in erﬁef' -E1} thé' Kiacts sf oppression and misma"ri_§'g«.em--é2ntf. 'T§f:e%__"'r'~esp0ndent wrote the foilowing fetter vide An_:f§'exui'%3 "REF.-U19;/::§4:;/952 9;?' 4_ 1997 Mr.Dirk":¥<{':7;7£2:;2f;ei;§ % U/.frafii£'e;fi§m5;if:"' . _ '-

Gé.;fmany5"--"'. * =§§!£:°aﬁ/f3r""".£;:--(j£§»i's image in Enﬁia has taken ":3 S€3{fi§3éi§1:_ iseafshg 24.65;'? :;iz:ra§iier'i§ .§;':g:;:£$if!Q;?" sf Sa2§If:3e W535 ﬁave gs £€§if§i}Sf5z'§'§§i? ..':»:3:ii"£12...Vi3a.::e 5Q;i%g:'i:":i?emf is? fnafiag Ulzfraffizér I;'m':'§ 3:?d'--.E>"3.cé.._Var€ sampeting daffy agaizzrsf gash z?:'f{1é3;;" ..e%:4; , advises? by meg, we have 5 . '5';z2arRﬁé':§;?§.,;'§§s 52;: w;'i3';: Friaiigér 5:23' we have &51L8e;3_;§';n§_:i?::g is praigg cf Fnégziair prsrﬁaafg ﬁigfy E':-.ig!:--'£igf;ff?§g §§'f€i}"' merits mreg' Saérsa dryers, ﬁészae ":§2§vi;:«*g ::§!??§ is é'%;%;:{.>w 525:5: Saéme is "w éfsagki by ijitraﬁiier, 295538 hgg gainsa' gr: zzgzﬁsr _ $3.95, 33:2 5:533 gameas §'?£§§£"§§?§f§Qf?§.5$ 53332, She "5;:%':§!f §€i§§}°?€$S€S if; inﬁié fgfi a grsy is ifze weﬁgtgrg. 3:' is £?€<f{}f'??£}'?Q gxfremefy' Qiﬁﬁazié in ' ifzg ;"?'3§z'i§<'€§' £55353 62:": fssie SE78 Céi'i~?i"Gi??§fS, £2? . ry-,v@u_o¢4W .,...34...=.

adafitign, Friuiair is afsgrz asking us what zevifi happen new. They warn? immsa'/are answer»-.44'T~.V_ from US and gigs 51! ea: C'£.!Si'Gf??8f'S 835 1' do}? '2 blame them. This is not only impactin§g;?"'é:2:?_'_v*-~--..__ ' image and Credibility but 3/so our bu:iif§ess.... That is why I had to set the dean'/ine, ~ %'Veifa1s'c.V have the pressure dies ready-a'ncit/76.:/7Qusir;g::V ' 4 made for export, Ear//'er ax: ff?-is gs 'raga/"V96 better fare/1 ofus. 2 § z 2 § 3 E With regards, y§U:,«S Siﬂcerefyi p .. ....

KRIS KIA,/I"

(6) By a §$.{I';ar{;ﬁ f1'9'9?; vide Annexure A.};3; the to tj.tfx1'e respondent; which in part is; ext:fac:%.%;s2..s:i'AVa'%s.Vfoﬁéws:

% "z95'?Marc;3 £99,?

Sag? :'vfm<;';'.§3;' ' 'V "

' 3":'A».><;i"<':s<,¥,*< .. , ' j«>m ":<.i.~' __ E _§;};§re5;; réqasssf €535 Lfiéraﬁitsr E':m'§a 3:25 zf%;»se:§§§..V::2a5£§:miQ'§ §3f€S 35% gerzséce 3552?' be énssgfaéégé $3 sazgpsri 3&5 effgrf $2' Fag? rafﬁar ' 'é:f:z§n 5:353? {gig cemggéiésm gm fridgae dryers, XXX/1'3.

m§32§g:"W' «xx///z//a2 $.35".

Kfﬁﬂ §*€fSQf?3i' rsgarzfg L/ftraﬁ/fer 9325!:

Birk G.Kmz':sbe;'n €§z'<3u,9 Chairman "

Cf) By a éeuxy' dated _20"';?x:h i9§f£ xﬁdé * Annexure All; the appellant .iVettéf"g::ﬁ§ﬁh gart is extracted as fofiows:

--j:u_j?3Q&§ﬁénﬁ31997 ?é":::é._#2<:[L}"3cfe'~.a:§i;r,ri__e4><fs£'inc7 re/'ation is only £17313?' 9:7 a' minufity ssfjar ﬁg/der. zvethfna efge '???.e5 fevf;afe,_, }2'?_f2:>...égreemenz is reached fgr ﬁsfzfrazﬁffsg" ..gr?zbh" ff} mcreasg Sis Sf?§!"€ Cagitaz' .§'«;:2_ 51' {E42, nev?'*'3§:e§;%ments f2'?if$f be ,§{'G§§S6§ »~ ' V' A ':::"isc:§s$éz3'_-- agrgea' 522$' sigﬁsé, m,[§2gg%xl?

" $553933} zegarés £jf§?§f;'§€€r gsnésé ﬂirk G',;'<;*@:":5be,£:';

*«.¢/ /////////44 ....36....;

Gram? Chairman "

{g} By 3 fetter dated 9" Ana?! Annexure--~A~:5; the appenant orj:;é""ag.airé_ respendent which in part is extractéeslw * '. & :95?

Dear Mr,Kim' XXXXX V XX;/,x;_\%': "

Z. WI!/1-~.. .-:é_:)_i* «.._a_¢Cepf'_ ';_ér tolerate ibis behav1'a_ur~::;_.3§2d ff'usf'~~.;_?nsis'f tliat you write to infa.ntr;{"'~~V_C:::ff;p:<es'sors -ar:1c:»*'~~~.'}'*% genera! :0 the market ;bi::;<:é{s?.fatAr3g'~«:;ieariy that the company Pace =15 ~zfh'e.'j'-~.s;:>!e4 exciusive importing a?is£";'ff2:,i:"o;r fa: '§3'i>ré€_ ¥:;i¥'yer5 and not zsféraﬁffer India, " ~ V ,§'::rii2é;~;2?Q;_f_e, E' insist éfzaé was 356;} A "'»§:;oTz?a§5-éf§;?§ agginst Pace wfi:i;2 fridge dryers as 5:? :j§?e..V:3,§e_}ir€_G;:jara§ $533; In tfzzs resgeﬂz, E .;_T.,3{s3.:":r§fe;f'[-.33' my ,g:'e:s:f§:.;s fefters 55:25 $9 3/$5; = _ 'wftf? igzéggfss-' :3 51'! zﬁaara' memsgrs 333*" $425" Jsggﬁ

-s:,§§;§$rJ;'§a_,£':z*, " >:XXXX YQs;;i§ §i:2cers,?y:,, M . ,,.._W~_Wwm«Am:»;x.a x/////z(4w '....3?¢...

yitrsﬁffer §;':r2b!2 &§r'!< G.!<rc2nsbeirz,, Greup Chairman "' {£1} 8:; a letter dated Armexure~A,1Z7, the appeiiant w'%o__té-. é respendent, which in part is ext-récted aV's"'f§i'i's:>w_%.?:

A' --'I'§:;i?1'"'; "f)_Ct0be}*' :5 $9? Bear Mr,1<'ini XXPCXX % % .... ..Z":;; "vie?§xs,é"1I>.:2f. tire afarQe"sau%:f termination we reqiuest _§"c}3v.Ves!f;?i:l[s,F2 ja new identity and Cémpaﬁjé' v:3a:22f'e.'2_ !;'3_ pf 'iazlérafi/fer (India) Privgzée ;iimii'e_9'**--..3--f »_fE;2s 7:37:83: égz 255 Seceméer, Z998. .

" ;:~:',X>{x>< ": =x>=3;:::X _ ...:"'~£%:£a*r;,i§':g.V~:' §'?s::":"§is%:';"Z'";'? S8¥€§"€§ $3? $525555 '- A §;:s£:??€::*sj--~.»af%::?a éaiéséaraéisxé reiatiaﬁ, we wiff ';*f3;8:;s;:*:';'2;c§g?es§ f??§§}'?€'5!f7 355;" share in 553:5 V a:&f'€?§§f'3;/ eyes after if $63585 25$ ﬁe sgfgéa' __ Uiffaﬁfféf {_§Zr2§iaj Prfegts iimifea'. /5:5 5 §§2§z's;'33!§$r 9?' éfzgf samggﬂy 52%'? mi? £§r::"§:?;:§ {:2 §XE§'i"iS'€ 3:76' é:'§;'?iTf'§3 Qggr righés 33 fgizi éavzn is: 5% affféféﬁ sf' §s*s9:::'§éE0n gzm' %;9;J;w~ ////////4a) .;..38.W scéfveiy §sr:"iC;'paz.'e 22*': #23 directors' Baaraf Meeffng. V xxxxx Yours sincerely, %%% "

4.1/traﬁlter gmfgz/7 Qfrk G; I<r0nsbein,V - " '"~ Grczup Cfzairmarf' (E) By the ¥ett'e.r.. d~atédA }:<3'?*i 1998; vide Annexure A,22__; t::;>"the respondent, which in parft is V' ' ' _ "Z9"? May; I998 " , §'e;a}r ziégf, ééffié S " " V LA A ibis, my 53:2 Se 52:35 5373:' I ~ :4:§E§v,g"i&~:?;§'§aE::fisf3 the zzifrafifter §f'E9S€f?€:8 is'; mafia 5;;-$5" a%"«§5"--}§s3;; 3§§§ whatever gffgrf ans' gas: it '-- _ may :§--.4iig§,[1'We wifi €S€"§bz'5Sf? 5: sérsrég aitrgﬁifer *-,r;%_}aQf<~3 '£52__..§8rm§;;y~§Q§fi'§Q;? Er: Iﬁﬁfﬁ, " gfgésrg gisgaarsfgz Uffrgﬁfiér gmﬁﬁ é3;';:i< ££,§<mr:2§é§z'z2 ,,.twgm/ vide Annexure-R3; which in part is extracte_d~~aé.:fevf§cz;§r M39'.

Grease £'f:airma;":. "' (3) The respondent wrete a Eetter on "Q6?" sepgf-+n%::¢}ee:*99ee', Dear Mr. Kronsbein, xxxxx Thereby we strengig/fee:'V»_.fbat yoa:__'_Af2§Ve forfeited the rigi2i'gnde2* th"e- jag/*e..ement, both in terms and spirit?) ::ohti1?ﬁ:L:,e ér£§V"ea sfzareho/der of the Company you-T-.ha5f"t!)e .--0pi<icj)ﬂ___%Jf either being a c:(;vmpeti£0r"»af': a ..«S!zarehQIii3'er. You choose ax sﬁ:a--reh'o!def'~.a7zj::f therefore promisec}'., n:é2jt4__«.to~v be ceivzpetitor. Now you he ve faker)" Vt/Vie' ':iou'te'jof'being,a"competitor and therefdre 'i2a7sze no_,_fig}7{:_'i"0._be;3 share/70/de/: In ms $1£'u;3fion,'.§"f::évz=3 'age .ie'ft with' no alternative but re ~ calz'*"'u;9_0'r: _ 3/'e.!,1"~3:r2' sefl the shares to us, mzh;'%:f7 we e:e~ 9w'!1iz2gT"'éeﬁaxrchase at 3 araiue ta ﬁe c:§e:'em*2if';eg"; Uaéfer Articie .i0(g) cf' the Articles' ~~ Q?' . ;;45so'::ia?E'ie;?. fmmedieteiy aspen _;?7ea:fing §"}"'{)_£'?f? 3/ea; we shafs' reeazesf egg:

-..__,§'::.;;;vié§c:,x§*, Ev?/3 '3§k13éernatﬁ Kametf? gee Cemeeey §'e_:iefef%;3£ne fee fasee ixeiue es' {fie sfzaees Se '£"§2aL'§:..:«%e'fzjfgfgeefiéies 5&3'? Se eeegefeieel V. ."f'§}:§::'s szleeerefy Fer Lifizreﬁfter g"21ee';'e} ,9:z:i ::"S,,, V I K,K§§<i;?{, :::§?e!;:e":es? 3: Eeieeegéeg Sireeéez, "' <:;'i 5%"

W ,,m,4,,,,nwwM_4 ///////(( mgg...

{£4} The amefiani in regiy ta the respsﬁdent.-wgrete 3 %ei:te:' dated Q9,:O11998 'a!§d€ Annexurg RA}, extracted as feééows:

$535" Mr.i<ini "We have receiveG"yE2'a:r ietié:f_»Vdaf.;:?.'4a' V2;6"g'VV Septeméer and would g'{I<é».._€0v._V_vpoin'€"+:2;{tf_?'?2e fai/owing essentiaf~pQinz_f$: " "

,2, Uitraﬁ/ter. has' V .'{2ot '.- said or assigned any shmev» eff u.'tra'ﬁ/fer.' ﬂkvdia) pvt ltd, (me '~:?QI?'?pai2_y)§f0~': a1\f..¢;OmQétitor 0f the campanwg ~ 3 2_;. "-=-1'3;T[7er'e_'is'* _r::2___ restriction in any docfdhzeiif erégreément -r_e§£'riCi"ing the righi of uitraﬁltef ;;?mbh% :m:;:;<ry an its normal business imiigiafingr 5a;':3.f<.; éf.._f::=;.< gaeds is casstemers in fndiga ~ .-

3, ~...V{.}'£i;';"a2§.?z'er gm§;'2 £355 :23: 8!?§€f8§ V-V:.._\5f?§S_ €%.i'"?}! z2a??é:'3mpefe agreemersi with the '::s3zé2£;ag2:§;ix..V5:";d is fsgalfy éﬁfifiéd Ea aomﬁete _ _ "';¢zi§f3:f§?é..;C'Q;2?§ga:2y, ,3: sbarshaider can fswfagligx ._ " .._;f:9fs::{§_5:§s'~}s:2§:§: 5523 égsiaess $3' 355 @z:'":,§§;'2;.»! sf * _ V:ﬁ.!;%iq"f2'§'.a§::'T;3 5 shareﬁgiﬁer gznriesg he hag §greea' =f?I3§'-' §°Q"€:G 39, .4, W35 ;':%"?§i';¥< "€,££.??;'%FfZ.'?';§R" 53 55% $35 3:31 sxgfggisas gsrgpsriy $2' iﬁfirgfiiéer gmébg " "§"3?e §€§f?§€ grarzfea' :3 she semgany 253 (2156 5578 éradémgrk "€j£T;%£:Ff:.TER" and fag fﬁﬁfk "UiIii§,%F§;?"E§"' $5 35;": 5? {fie sgmpgﬁyig 2--~~ **9*¥'*< .octg;>be}f:%9§sf A . ,~& ./'/.4/lﬁﬂﬂiiv//rr'1;».».»..-.-»..-- . wagiaa serﬁarafe ﬂame has been lawfufiy terminafeg' and such zferminatisn wfif have effect an ﬂecember 2 998.

51 Uifrafiiter gmbl? has not c0n7}fif2'itif£%:§'d:'VV>?' i _ of the basic c0f!£:£;o,r3:ion~. "

any breach agreement.

6, Uitrafk'/ter gmbf: z"}b"_gf¢1'ang duty ta the mmpany 353%' .1735 viqfatea' s.:Q':ija:i2W duty,

7. Mr,!<ren5be:'n has' mt 2z'ia':'az'ea' atéy ﬁduciary duty that he'-"";*2a;§';z "-have to"""'t¥7e campa/W. " 7

8. Ultra ﬁltetfgmbh ../735*} , " 'farfeited any right fa? Csfntigjue' 52;); £:xe"9'_'§.i7.3ré:f2older and therefore;_"haj;{~..n(; .o;2/fg_a}fion_f€2 $3/1"'Ifs shares to Mr.Kin1].'E; 'jgijcjup:-_g;>f'§ﬁ2a'r*e[7b/der,.,. ' Article 20(9) has no ._a;3;3/£cati:5r7 .t.:§~."i'.'ze""facts cf the present ca-$33.... ' « 9;' V have every right £53 £136 £526" £';f'a::;»*'e_ name " '?f,jz_'TRAFIL TE}? " in any para"

sf Z3'£?8 é*fsf'Q!'}.'£Z'2" includfsvg' frsdiag The C@m,aa::;/'5 fzimftea' ',::.:e1:*;'2?'i.ss*i:?!"; is 553$ {be mark ~"-i;f£_?"R,éFziTEﬁ2f'..__a§V par: gf its C§ijQx:.?;"3i'€ {game A "'§;:=a'»*."5*s "':"2._:rader;2e§r 33$ ﬁeeg? zermmatecf arm' V_"~$_:2Cf2_ '~§°e:7:??§x:atia:? WEI! have effect gs" sf *2' " .i3é::<a*j::£?;§5:If';~.:€ 998, isiciféfﬂg fG!'%'¥§:"G' 53 meg: was 352$' aif ffze 5::%§r§:$ members $3? 2&5} Szieber $8, 243$ 35 _ ;;;5::re.=.§ise: 5532353; 9:25. mi S9',/~ 955% Ggfffﬁﬁﬁééif?

., ,,-ﬂm~uw xxx/////z44ak W425'.

Srsuﬁ Cﬁairmgrz "

G} A reading 3? the abave comma;nic;§;ﬁ§--or;§:"§¥3'¢'--§2.f'ii*=:A ' clearfy disciase the manner in whichL..t.he4 §a:*t'§é'é"$Ee.V{i'eé_§§;,ng..V ' with one and another. By virtue bf zrsse the respondent; it: emerges ' V '

a) That the a;3{_peliarrf;A__:4i;iV':a§s;._'»E;svc3;;;osﬁé"'a .__A_A:Q.;§wpet§ter and therefoV»re xi}}a.s by § shareheider;

b) That t.h_e ta gel: their V C) ____ .:%:L:vv:V<;V_c>r:'1r':petition with Pace t::»'f1'z:;:r*é2$§;»»a"ndent is unable Ea answer §;§§e:%%é.S'. smstemers and heme, the ' " aﬁmﬁaﬁwyv is Qﬁséng its Qreéfbifiiy.

wﬁttezz $1; aha gﬁgeifaﬁi, me gm": md V' _3:;§$:é;2:ev:--.V§3f':§é€ S&§"?§§ weufé be $5 €§§¥G*w3:

.34} fﬁai the §'8§§$§?é€é'E?C sézaaﬁé S{§§§§¥'%; ﬁe $;;§§:'2e3§ $5 ?§CE Egzsépment gamer iizafé E%"i{i€§"

mm 3 aamgséétésn WE??? E3:

£ .,,,_m"~ww¢zwv z////////a))) ".44., h} That there are me restrictiang in any §cc; .;':'2,jent er agreement restraéning the Fig??? :§f f,':!;§eE rw~ appeifant to carry on its norrr'§3 z1_:1" .i:;u.s[i:€és3".4'T V' mciudfng sales of its gVe3i§'Cis~«to its <::4u_é§té'me'rsVi'én"'. India;

E) That the appeif»an»:%f"~~._%§s .§7eg§Eij¢. s to V camgete withtthe ;:3'i"r:-;%V_;an'gi';L._. »»»» 3;: That the a%'bp;~;i£a'n.ti.§'I'~5%:%L §wL%,,,/f;_duc:ary duty t0wa;_d$v..the ;

{mg .... ...§5.?T:é'E'§§'1'fE"::g.ccEre.ép--®a'Ve--nEe it dearly emerges that thézje is {he appeiiam'; ta acquire majerity shu7ae:e;%s ..a_ri:£._t:;._V7a'r.,r§%e 3*: a c::>r2i:raI§:ng §OSi'i§G§": in _._the §;::.*§§:2:V;3'L'azz,3,f, £.'3%§'~t.h:E«s'ef:_;saé by the resgcenéeni, the "v_;aj;:;:%;e%§--§s3§2i..V.§ia%s'éﬁéﬁeateneﬁ is market their awn gmducis §n E§'2§'§--3é' 3:' '*1/éé§;--§§_;f*;¢3ﬁ§?aér gffsré and £95: £5" may :*3i<s'i "Fézat the §fes§@s1:£i§$r§'*5.V§':.:2fé as $333: an we agseéiaai fa" Ehs §UCC€SS af {féI}':7.'?{"'§§$'§'"§3i, Gs {ﬁe eihes hamﬁ, ms appefiarﬁ: ?33*~:§£'}g Sabzzée 3% irsﬁzﬁgirzg if} ggmgeiéiiar: with {$23 <;é~W I////////(( wésw comﬁangz. Bath gaartées have made a§§e§ai:iens a.§"a--i§1si each ather that they are manufacturing comgetiticn with the company.

({1} The appeuant having :c3:CqL§'§"F'E§¢;} 'S.a'b-éfé are indulging in competing The Cemparw' is therefore a '%§{1jV»§§et§tion with Pace Equipment," than the company having bgfen ta_k.ez§_ It is not just a the company.

What is of Eeafthy competition;

but a which is fuiiy supporte{§ E:~:{: ifhé The apgjeéfani being 3 s§°:a:'eh@,§--::i.6::f Gf.Vf§l:a£'-'.§:E' '€iﬁ§"§"3$3§"3§,%' ganrzei 'eherefare énésgége Es":

éiéﬁ-ébjefaie*T'g€:f$~__a:' GFQESSEGS Q?' gommission against She aﬁﬁeéfarzi: iharéfere has fagﬁeé 5:': its "'v;é:s§%e$'--:§w§=ré5"__.i%ﬁe c:3m§ar:y. Tééarg has §€€{"% an aaiiva, "« .:'j ' :f§§§'§~§}f£?§'8'€é. ggféé negiigeat at? by the agﬁeiiarsi §SZAfE1%%"§L'§S the we éaigresi $5 ths §;I§I§$§§§E"%i? smuiﬁ 5% miy "'T.VV."i:*:§a{§_r§ﬁs ihe gaszwagzy Eféﬂ mam eise, $3; beiyég a x//////4 £svv%6ca» shareémédey G5 the csmpanyg the appéféant canngyé;-..'ac:

against its interest, {9} The communications I-Jake».sjéyeai' "th_aﬁ "€ihé"". appeuant was gzressurfzing the resf§o_n::£-gift effort sf the csmpetitor, which-§§§':T3Vpetfforg"w.a§_:té'%é'5éVver V by the appelfant. It §s v>th§refQ,re"éigfidEé'h.t._tha%:& 'everivjthaugh the appelfani: was a sha}é'é'?j_'{>!§ieva;"f:§# in view 0f the fact that.V§;t_.:!ﬁa.§i interest were omy towards; were being said by Pace :i';i<§e.Qiijgﬁvt'<§f"'the}appe§lant is ':9 ensure éts awn rather than that cf the comﬁéw. . §""'§V:€?§{£E:,.v 'ésfs"~~"'the face of ft, E: is evident that 4_.._:_f"se gf :§%é""a.g;1§.§§§an% is harsh ané hurﬁegészgme 3:335:33 was beéﬁg exerted by the V ihﬁ success gf éig samgeiiisr araiéze? Téifiarz 5&3 méeresig ea' {he camgafzy. Tire ~.. ;f::f3:';§:'§"::§:§"*:§: grgasagya 'aeérzg fﬁééé by 'zine §§§$§§$§':§ £3 JAWW .,,,@,W ////////(a) Mg?"

therefeye have eﬁd eureenscme. Heme; the aetienef églze appellant is a clear ease ef epggressien,

(p) All these facts and clrcumstar'g<:e--::..U.:l:eaVd*l~:i0.ithe"

concluslen that all is net well with the share holders. In View of Jghe ';::reS»e:3t jllzlle company cannot be run effe'C':§Vf§kel_y. aVﬁ§€8S€ sf eppressler: has been <-luti.by:.;h§._,,fespondent, The appellant even tljoughL'__bel'r;'g ellArljir*é{:1'ri'tg,?V».'.j,;::%€are holder; is cenferred w%l;l;§ "tl:e: board meetings:

Admittedly rival competitive busénese the Cempany by maaufeeéeglﬁg the veg: same egedects. 'me eeeellaeé threatened that it weelé star:

":*:2laV{%é,2§:.a:c§f;;:*§T§'*s§%._._" 'éiliveelﬁlter made 55; Sermany' predzgefs 33:: ffezf gee' Cesé 55' may §'3§<e'i "l"l*¢e:'e ls ﬁe " ;:%e$A§%«l:l§%§i§; Cemeem! being ms": neimally, effeciévely _§:e§f§---isebly under tee giver? eircemeieecesl 'ﬂee VA i'%ee'e»eeLéee: allegee iééei Elée eseellani $5,: eerryleg ea a rival mseéeese 3%": lie ewe em ﬁes eeea aeeéed fez ?.i§?3fjS§'$ _\x=<"'"'¢"'*%-«....

ma:/§'"'*' "gang where the aampasy has 3330 appiéed for the sama-'~...>The appeliant admits to such a ceurge cf emphasizes that there is rm bar to do such a the totafity of the circumstances §f""£:'he-4 made out far winding up cf equitabie grounds. Howe§e::fj}"~~..:he sthe V company wouéd be prej.udicia§-*'*a--ri_;i~,hence ?t"§'sWjQst and necessary in the given cfr€:;s'mSta}:§§es_ 0-§"_:h'é*fcase ta direct the minority sha;ﬂé"h_Qld§§'%VV'té$513: £9 the majarity,

(q) fa}:ka;;,{%:'riaé'a}:}§eezégn£ hvéwwafready initiated os 54/199:'?£§§%':§re.i.::_heV Bangaiore with regard is the us e':_;of ihe the rggpendent and éhe Sam, L13 s7%;:§.§ ';2é:":::?§ :1g: Thersfere, aiceyéing is the I- &z'§§e?§:%}*::;.":§h'é*.3535 dféééis £3 wiih regard is the use a?' 'ins §:*;%§':-:=;_T.%§*:i::§{§§:'*«?.:;"%i%éf:::f§.§i'er' teas 32% f'€§§§ﬁ§E!'Et§ is as'; abwiagie ﬁésirusi wtaazeen the 'fhe aggeéigszi 5S §f%§L:§§§§'Eg if'? éiresfi €§m§€i§t§$§E

---3<gé'§§;rés'i:'AAi:E7e Cemﬁarsy, The aggefarzé: hag ihreatensd £§a""""""

/ // /W ,,,///////z4 4_ . _e§eee:§ 3Qe}eiui;dV eiiekei .::i:_a.:

A"~et»iEf§§e§ie';3§_ve'.ti3.._§ii2e eegeiiaet. ' eeeteeéz *-?.ef:§;:ei'A i:e greei §£?'%€§°?3; the reseeeeere _.4g,, withdrewaie aria eenceiiatierzs cf the agreements»--;'*--._»The appeliant is manufacturing and eeiiing the that are being manufactured and said by which is therefore adverse to:-Iifheei.iAn*;ereeifs'W'_ei'*9E'he'. respondent, Admittediy there 2 sharehoiders and bath have ef the articles. Even thougij i:he..ia'pR;:i'ei'5.ei':t.'ho£eéS"26'0/e of the shares, ii: has been coru1ai'eif_;f*ei.} :::§.'.':;;;;;b'_*__i30wer in the board meetings; mean, that untii and unigese" decision could be taken by_i:h,.e he 53 a majerity, The beard meeting enabiing ii: :9 seuttieuﬂfiie the respendenii The meteriai V tiiere are e series ei' irseiéenés The ecis Cemeiainee ef are eeeitieueee ens are iieked ﬁe see eeei .. Vjiiheviiiieeeeiieei eireeeeeé ie gem eeeeieie ceeirei L ﬂee' eeiéeeeey eel eeeeeeeieg eeeitieeei eizereei Se eiae bee been e.i§:é~§;""""""""i ////////(( ..g§§..,.,.

§h?€atBﬁ@{§§ Yhe threat is "at whatever sffgrzf asfzd .;:1i;,s;f it may z*&!<e"i Csmpetitive businesses ﬁave beenQV.i;e§jrif§3%»i%;e5 LEQGH, by the appeiiamt which 25 adverse to iiofii the campaign The appeiiant has iii:-:i'éii\ii'seég:i"«:the' and has even threatenedi Gm theséA1'njéi':_¢}iai held; that the intention of a pecuniary advantage tQ:..g.i1e thiéifééiiiindent, for a wrongfui an intention ts over threw fit case that estabiishes Such actions of the appeiiam: éontinuing Qppressieni The CO!'1£I1v7.,'i.C5I"§i,i§'°§€§"iS€i§"T?€, harsh and wreizgfui, refiegtiiigxt§fi_éAAi.a':i«:.\".§f azmfiderice between the iwe __.s§2arei':::i§.d'VVe_:i*;~;,,'V h§=§'%%=.-g'_§:E?A€§§3?'iE by admittedig engaging AV'?:§f'i§$é£§f.V_bfL=':i§--i;§'~a'aiﬁifiijiefitivﬁ ggmgaizy has gated ii? bregch 0? Qaeiii i-is was §X?€€*£@€§ i:@ agi gniy iii the §r;vte:*$§*Ek*€.%.§Viiziﬁénréﬁmgagiy arid EEG? agairigt iii Ziiie aggaiigizi L gissiifies §"i§S E€€§G?%S $32' SfZ5€§f'°§§ iiig: iiié €{§.?§":§§§§i§¥€ bzigiriegses tine: E: has unéeriaken, ES 529%:

'*3? gw T%:aAt e';3g5e'§.§,enE feeékéng veie §$W€§'S in majer eeeieierzs < v'»._€eme7e.§ya V:.~E"%§V{é.i*ATt%:ere ere eéiegeiiergs ey hath the eezﬁee ~ff.-V'4.e§-eéreei e7ev::_§9é' eihea ii we::%ef mean the? eeth ef ehem have ¥:§'ae eectrine ef eimeei eeee faith texeeres eeeié .' ﬁes, eigﬁeme {he miereei: ef ehe €L"G{§"§§§f'i§.i in M53,"

erehfbéteé by Ease, sfnee the agreements between,»[-"':-h[em have been terminated, Thus the appeféent his cempetétive businesses' He does not these circumstances and in View o}°~"tﬁ'e--met1erE'e§:e:zé'. we have me hesitatien {ﬁe heid made out by the responde::%;}:"'~~fQr ythe company on just and ecgz,1..§table-'gV:;é_:L;':é€:£:;,._ CehS'eq'aentiy, it is necessary that the minority be directed to set! it;::ehare:;"Vie:'tf3e :es§f3'e.;éVd:e§2t;' (S) meeeea iesngsidexgeat}; ﬁne material pieced befere §i;V'V'aé{}'i:1V§§'é" order, On facts it heée "€§?aV f t§'§€ naming but a gieréfied perineiefzip b"e'i:t§?e'e':*§"':f'%'e eetéiéeeer end she yreepeeeeni, fe7'f.._'t'3?2;e.u:e§f%ee:;§§"e~:e~§3eee semeeie wiih the eszeieess ea' ihe '*1 W,,.4,,////ou ".52....

»r:'/ jeeeardyg Heeee, %t is a case where the majerity e'f'E--ejges oppressien by the minority aha thés minority Qrovisions in the Articles. That the reiationsﬂip the me parties has become so SOi7ft'"f'f'i'c3*<':. they er: the business ef the company itseff wouid be a very vaiid 'V Company on just and eqgxitah,ie"'g:.?g:ez'h'd.€._ Aeet:'rd'i'hV«L:yfy, the CLB under these circume:taﬁ:j"Ceé-.512Eec£e'e§_',"t:hve'fespondent to purchase the heﬂ a fair vaiue to be auditors of the company .... "r:eeekc§e»d"'b*y;the CLB are based on materéaéhand er: fé:£'s.,4:%%;'1ie'*€§§*h<:=.t see any perversmy En the ,4§:e'-<¢«//.a«2.-:»//,.,........., fénéings rei:::;fcied_VVVV' tee CLB that caiis fer any The""ee_e_;:5es§eee errhgeej at by éhe CLB ere and are heeee er: the meieriaf geeed er; we féeé he ewe: thee eeffe fer any §'§3?Z$f'§&§'E€¥f§(:'€'Vs / jyrz Mm £*&« 51; .4.

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F § ..§ an .3 Campany Law Beard ﬁg just am wager anﬁ de_§e.3V::'-:2;ét._VcaiE for any interference" For the aforesaéd :ea;$su:'%'Es§;":hEéj'ja.pg§e:éEV» being -devoid of merits is dismissed». F'rs*

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Karnataka High Court

Ultrafilter Gmbh vs Ultrafilter (India) Private Limited on 26 August, 2011

Bench: V.G.Sabhahit, Ravi Malimath