Company Law Board
V.A. Vanniya Nadar, V.A. Subbaiah ... vs Tuticorin Vegetable Marketing Company ... on 24 October, 2001
ORDER
K.K. Balu, Member
1. This is a petition filed under Section 397/398 of the Companies Act, 1956 ("the Act") alleging acts of oppression in the affairs of M/s Tuticorin Vegetable Marketing Company Private Limited ("the Company") and seeking directions of this Bench to restrain the respondents from transferring shares of the Company in favour of any non-member in violation of Articles 3 & 8 of Articles of Association of the Company. The petition came up for hearing from time to time on 03.04.2001, 10.04.2001, 20.04.2001, 08.06.2001, 27.06.2001 and 16.08.2001. The respondents 1 & 3 were represented by their counsel from time to time. During the hearing held on 20.04.2001, counsel for the Company undertook that no transfer of shares to a non-member will be approved for registration by the Company except in respect of those covered by the Madras High Court order, till the disposal of the petition. Thereafter the respondents failed to appear at the time of hearing either on 27.06.2001 or 16.08.2001, in spite of the notice of hearing sent to them. The respondents have neither filed counter to the main petition. In the circumstances, the petition was heard ex-parte.
2. Taking into consideration the facts and circumstances of the case, submissions made on behalf of the petitioners and the opportunity afforded to the respondents, since the only substantive issue raised in the petition relates to transfer of shares to non-members, it is hereby ordered that the Company shall not register any transfer of shares of the Company to a non- member expect in respect of the shares covered by the order of the High Court of Madras passed in CA Nos. 178 of 1990, CA No. 1857 of 1998 and CA No. 822 of 1999 in C.P. No. 54 of 1983.
3. With the above directions, the petition stands disposed of.