Ashwathnarayanaswamy vs The Board Of Directors on 8 April, 2011

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Karnataka High Court

Ashwathnarayanaswamy vs The Board Of Directors on 8 April, 2011

Bench: Anand Byrareddy

IN 'mg: mcm (§T(_)UI{T {')}%' §<A¥'{?\1ix'FA_I§_g:'a AT H B CE A LO R. Err} E)A'F'I€i£f) 'r1--n's; THE: <):<;""" DA 3:' (f)'F A PR} [4__;.3{}éM]"i' iii: . 8}3F(i)I{ E -

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--vV.A_t}}2:t.v_':'§iAé: MiiiSlvéigiﬁg"'§:¥.§_:Ti3'£_:'{'U1" as the §f)i.s<;:.%p}ina3'y A:,1th0réty hm; ;:31"e:i>c'é3e3s;§:é':1i. t0 "in'i:*€;:t.a:': p1*m'::3<::<§ing::; a,r1C¥ :;{'>13::i.:.u::. I;-ii} %_nqL1i_1.'}g' as ::zgz'=t'i:'j::~;é' Ehi: .;§2§:i.%_iiT%>;1:'::" :.-mai (ht:-; ps;i:t§.t.i<m<::f %"2:1v§n§g §j::-§:'i§<:ip:it:: 21$ {he %r:qui:'§; 'w'E_t3£1<}:;:z aizzmuz" pre<:1L1ai:3<.i f"1'<:=z"n 1f;1§5»ai_11g zmy (>f?3j{i€5§;ii3§": T ':::s:':{:.3 _xa%a:;='3: {sfju:"%5s;z.:§£a:§%<._.>z2 §1";:~_;<::E'_'a-2:' as {Em <:<_);':t£:§;£§.<'*::*; Kim: Setéigm 3} £§',:.<§.i<:;'°:i.:;:*s:: [MS 222:: :'::§}:'>:ft :3? :§";:% i,{.)§§.;3_}~"":§E<;i'2i :"'3E2g.§";E' {'6} Ext 55 EL?

fiiséi bssfare the G£}'€€1'i'a§Z3tEEI"1f. mad it is the {3{:Vaz".§2r11e1.1i £i§€§I'1§': which cmzld ciirect {he Lckkayzzkia ta h.<)1.<§ an in:;ui.r}-I un.d:ar"Ra1$ iii» of the CCA Rztées, Thaw am i1'r€k:°v;:u1i :'~;:i_1_"z<':€- ':h&:_r;e;§g';3af%§:éf€;;.11Vi" V. , KLAC has; itg ($511 Rules; and ii has f£)H£"}'.?'g"fLj)§i1"'¥'Ii}.,i.i3>Vgeéiifiiﬁ in <:(mducting the iizquiry and hence, {§;6.2"@ Dis;E39"i;2§i.;'1.2<faii.}<. ';i;n__ 1';heT f findiﬁgg EiI"i'i\:€£i at by the D§sci§;;'ii.§:.§1z'y 'Q-'3&I4;iE2{§:i§}2,»v' {$3 ccyntentiim tmt the Di3<:ip1.inary séﬁght {he appmx--'31 of the appeliaié the Scape of the a'ppeaE that fvzagh a1'vai'IaE;'l%':: if)' is also met re-1.avan.t iféggxiit 9f the pecuiiar {:'iI'(3¥.E.fF§E§é;.f.1I1£?i¢.:.';%; ;:§f"£ii2::_i;:1;;é;._§1:.. ti1::1;i there \:«;ras: an ir2ve$i:.igati<7r1_ conduczed 5j;£.'_¥'Z h.'§ 3§.;:}E<ay;;k:.2i..'~ and 21 repmft gensrateti which was A_ §'<>:'x§_,»"éz1:;ie:;§i' 3:} z%:e°I'es.;3_;}::~d.wi -- KLAC {:3 {aka ﬁarﬁzczr aciian. T':'1é' a§3p";%g§€r:ivi'v~V{§:a:--:°&:f(>':"6 by way {Bf abundant pmdeace {)3 {E313 §2:':"':_<'52" ih_¢"'?§%iEz1f:21ging Bi':*e£é:0r that wag gozgghi fear fmm Eha "~.K.Lz%C ":a,a;*:{i {he 21§p'1T<':%z'a§ hanging §'$-till g.£*a.;1't::*.-:1 dc:*>€>:~: 1:01; rasgaiit if; A jV."?.hc..3§;>§§E2:n§ au.i:h<}-?§:§i hiya.-=i_ng appiisti iisz: snind $6 {ha marks if V. saga' "§§3;%:§ £3 éiéiééff if a:::«z§$i:;§:%;§é3:{§ §§'}{§ﬁ§§€EEE{iﬁﬂ{§l}_;' in {E353 % subsaiz.-quéni. app-$3} that wag féiad by the p$t§ti{mr::' ami by the fzmt. than he had fiiad an agapezzi subsezgazentiy we hm:-'::'*.._z;:13: guggh £}bj€{:{.i{}I"i ha might Eimve had as regatfds the a§:;.§3.1';€;*v;;§:'§'u was: :§<3u.g:h: by {he ?xfi22:2.:2gi§:g D§:"e<:t.»:>r fr(H:":M__t ¥1€.:. a:;§fpé.'3_iate' eiuthmity p1'e::edi1fxg ma: i3=:1'p{}5;é:i:m of {hi$1§i';§ei'._€>f4'pL;.::i'sk;1}f:é§ﬁ:;,T In$0fa1f the canientiim {ha}: ;:it1.0§}1e3f }3s4.§$§i${2§nt.

was charged with the Samé Sﬁééiﬂﬁfatﬁd, is on account of the fac:ﬁ 1*:§.Et§ .:$';?_':V:f:§'~g¢:§ti<3;i:er and the :;aid Nai_1<: are net' _i:aii<'3;__1'1'£i<:ai1-I":i':2.d:iz; ()1? the rnateriai on recmfd V'i'§é3.§Iv':5§g:;?V--arri_¥ed at by tiha i:}i_s<:i13I.i:';:;Aa';°;4 ~':1s:>§ :21 g:.mu;'u;i am whicii the pa-ti_t'i.0:"1e:r VVCL:241iidV :§eei§:' ex&{i_iae1fatE{)n when tha findings are A_ $<';u;_:;r"€;:Iyv ;é'g21£§:3£ ths:;.g:_¢§.i;t:<3.:16;* am in 21:13? 933$, {big mug": in its; éxsxit'j:'z;':'s;.di.c€::2:ji§Li;-2; no: s.i'£:Eir1g in appszzi and is mi in 3 p::as;.i:€i<>1t1 :6 'r¢¥$3Xa.:}:i_:1é:_§E1€. $-Vid€'§"iC€ {ha}: is; im the ba§;i.s~; {if wE';'§¢§'1 the W.}3§:§<:f§pifi::2;iI;%_~§2 ;%ut.%:{3r'i{y hag imgsssezi the §:;r:i:'~;1f1m.$fz:§. §.ns:a}£132* as; ":'hi:":.,s:::_:.%:{}§;<§; 0%' {E3636 §5t.§..{_i€m:a Lira <:<:m<::*:1":::.e<i, £315: 1e:a>;.r;:er.:§ {:s.::>:.,:1'1:<~;e§

2 ...:Wé::;E:§ §;:§§m§%. $1322: ?t.§?3.€ p::{.§i'§;<}§;€:r Va-»=21:§ ma: an %E'§_it.ar:-its: mar: zazzd E he: was €'h{i As;~';i:'§t21r1£ Di.1'<';'.c;'.t:;'::1" (}f the 1"e;:s;;7;0;";<;i:;>1"1t -- E<I.Ls'a{T. The piztitinzmez.' b:.1vim: r'<:ma1i11<:~ci L111e:L:ti1<:1'ix:xl§y :1%>:+:":ni;, thﬁ I't3Sp(.}{§§.E»:2.11IS% Ezzmi mt: c;>;7t'is;>r1 bU.§§ {{2} .§5%$Ll:3 :1 Iliﬁfiil-£3 cat' i§i1pe1j{i.%:zg i:z.qu_i1fy in ;s§"1?:is; L1a;1L1tl1<::fi.y:<::i :-.1bs;:=:11<;t:=: in his 121:;tVV.i<;':1f{:xa¥'i*1'4 address, E~£é;~'; iéiiﬁki.-'I1 :1:;§<,i1'»3:3s: wags; at 'Raéc:11:,:;" zmai t'23§t1.<,3'ti.gf€§ ' been sen? t':=:;f:<:322t.e::11y to t.h:: said ac.it']1"::-si§;; ziﬁcji' {h:i--£ the .s<;i'1z1_a:vC(';€:§d not. bat ::;<::"ved e.if1'eciiw-:.1y cm the pz:1itic'>:ie.:; 1'~"E.1<: r::s;_j.C»;:1<§ié':;1I$ £35563': V taken 111:: 11e><_*: Rtfip of is:«;ui11g a ;:réip.§.f'p11l:')'l%_<fa-:EiOE"1 ;<§i11C¢:f the 133% knczwxi addnm; \:s2as"s at R3i<;?i'M:--:r 1%-is §.§-3*.p'"::';1._p1,1.Ei1.i;:aiion also I1;1v%11g been takcI1 out 2-1:'.Rafel11::7~--:;:21Iine:>%-has iattﬁi i{';l_'::«€} %r1'€:gL:]_a1" :91' ii <_':z.1m1o§ ;~:a1;i:ivi.i"i::{=-it'E1;-1é:;~;9:£:'v§:::.:%i::;3ci in Ehif §<:.tiii<>r1e:* mi being .2 p§a,::e:<§ on iiéliiixs of §'Iés::. i'i1qi_y~ir"»;';' It i$ :he::*e:si'te1" that s~;im::e Ehﬁi '_ ;3<3ti_¥;£'€';:;3¢;::'u":< p:':3$e't§_c::,__;_:g1.[;}d :10: be $~2?c3C¥.EI"<L'3CL than Ihr: z'c:...$p{'::1<;i:::1t :1$;:t.§*1?m'i;j.,*._imég"vp§9<.>zJ:<2¢:d<:.d 3:0 impuge the ;}:;:z'":is;}1z1'§::nt nE"dis;:"z1%s;:saai §§"L7?f'1jZ S€-I"{iC€:".':._ 7ii'."'hié«; w';:.:~: p:;':.:*m_i:~;s;'ibEc: :~:incc-3 {hrs p:':.>c:3<~:.:Eing$ had "~..E3e:::z E%;%:i§'1.-:t.:';:<L'E i*é§§11L1}i2;iE"§{L',{')¥.I$I'~.-" in 1"€..<;p<:c{ <35 i.vw;> <:i'12::1.'g::2:; Eiﬁd " s:~;1:%,;z_é'E'::'>L1g,E:. {Eggs p:;:-t.i%;i:'>ns;-:1' §.22:<.§ hfeiiﬁfi e{m::§::z11;>;«:22'%}*»; 21=:tir<3d.§ {E33 V. ..,>;.éi:<_3:2_<§ e_>:'":%§:::' gt' E322::2_é_s;}1:ne:'2{' i.E'§§§}{.}5.:;€'{§ mas i:=:m:E?2E::: :~2;§:§:::'-: {Em "ii 5;;

§"}I't.}C£f€3{iiI1§§§ had lam'-:11 i:1iti.z::'ed ;.'§}.'§£.§If ii) 135; €...'.()i'1"If."Ji.E§.."é(',*§':-,«-"

I"8[.§.I"€3111.f£i'iI. 'l"'§3<:1*:':i'c>1_'<:_. the 1c:a.rnc:«;1 ::{mn§:;=1 wauki seek :0 LjV:.,:'::'--:.{if"'}-»T"

the i'az'<i::;"s; n§'}7L111is;%1;11::11§p 1?, In this a%:>m-'<52. fz:<:*is: zuzd CiI'C'LII}E§£[é1I"1Ci;3S.3'.3163'jﬁfiifiéﬁfii'-.' 2:<_>a12$e:1 i"o:" {ha-3 peIi.ii<m:3r has piaigéd. _;r r;:E§-V2i:":g:t3'1"(.13 "s;3:;{c'é1"5;}}_ 'j::cf.g1':3e11ts {if {ha apex. C€.>'L!I't 2iI'1:;§i.§f_}(;3 P{I§'éj_Eib"E1I1€§ H§§E'jJi'i¥Ti2;1 Court in s;upp0I'%, nf his cc):1£c11t':<n1s;f"uIt no: i'1ec¢sSa1f}}';£:> :':--:f:::' to [hi3 .<;a_n1<3 sitmt. 1.11:': i§s"ué:?; _th.2_1£' s:j;:'i:§{9;i'v--_{:211A'1"~;*':;:3, ir:d€:p:=:nde.ntiy c::msidé:n3Li.

T}i{: fi_1*;s_;~:A. V§i;ue.s¥§1§;$i; _t'1i»::;ji' w<>':';1Vd"a:'i$e féar <:m1:'»;iLi<:1';1ti:>n is whczther the zx::sp<)':1§ié§:1jt:~;_ 21'r*:A_ pin:-;iif_'.§.ed. in <::>1'1ducti11 g the in<;;ui:"»* :'::1cie:'.»:}u=: Di:\;u<::§;:r'li:1:3v"amid. ésppszii R:'S:gLi1£'i'[i(')i}S gavernitzg {he é*%3:;p<i'i;r'§c:i'T:é' in {ha in§;:..:1nE C2186, ii is 5966;} 6121: at the iE:§;_?;§i'r1_.;e:3-"'as?..:hc.T 'S'{;ue {hat the L-{')k.2i}'LIkEEi §1;1.a§ <:z3m1L1<:t<:d an _ %_:.m9;§i"igaa«..§§:x:2'véimi s;::%}§'1"3%it:::i :1 p§'EE§i¥T1§I§.';%E'}«' :r°<:p<*.s:"E gﬁiiecsaiixig ii ' :1,i:-:i'1::§LE.s;_;<;i §:ia;2:é:'j=; inte Eh-z: 2iHii:;§a'{§£}E.1.S ;:g;1i2'1si. ibis: pa-::tEti:3:1<:::". Thig; ' ;"¢:*§}{>:*§ war'; s;asb:n.é§mc§ :':m%<::_" .<;<:*2:%i_<m §file;f%} <3?' €316: '¥{::s1':1;z:a§§a:

L<'_;E;21jy-'11§<t.é1 A:;:t., 1987. When 2: 1'<':p01'§' L111<'ie1.' :<::3r.:t':io1'1 ]?,{3} is sz1§}mit%c:.L1. Se.s::ir>:; i»-iL.i\ of {he CTCTA RL1k::'s wc..>L1ld c:0m<::_ ..§:11<'> piag,-: wh_i<:1_1 I.'€qLIi.1"i'3?§ $121: tize G0va:;'::111e:';i .<:ha1§ t.h¢r1. in ;:1"t'i t'e: _ 1*a:q:.:ir:": {he L<>kz1:,:22kt.21 to (:('"}I}dUC{ an i.m;s,1iry ifrtgi :'§;<:: 'saiid._f {*3 mi}: <:.<'711tempI;':t<3 any utilm" p:.'c.x:c;:d12;"e wh<:.n the,§'.m{€:'st'ig:ii.i€r:

report is; b<::i"1>1'e the C:<>"v<:1'nment.. i_1}firz'1*1ii'}x in5 tiity preserzt casge em hzmd is that aim: C}a;:§'c:1"11::je11§€ .§j'a1'<;i_ mi'iazitti11gl}: fk'>1"wz1:'ci<;{§ 21 1"c':pUI'i {G the M219:-zgiiigg .Di--:*::.rw:1:]v;1' 2-mcéth££"Mé,i1'i;.i§.§:i11g Elimctor in £116: belief' ti12t't....%£«..\m= V_ fbr _hi':jf:.t(> giéiixduct an i'£%q11ii"}f iv;

t<;::";:n:§ (3iV?_{hr;:: :{:'i.f:;VC"§;;1'§iI1 @;V;.z£i£i_ﬁgypctzii Ruitas; of the i'£'3§:<;§}€}Ild€Ei1i + KLAC h21:~:u'}.3.:jcic:?:eLia:_<.f V15: "i.r1.i"1'iat€: pI'<>c:e<:»:ii11gs mzdcsr the .s;2m1&

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