High Court of Judicature
at Madras, in the nature of derivative action on behalf of the Indian
7
Company seeking protection and declaration ... suit filed by the plaintiffs
was in the nature of a derivative action on behalf of defendant No.2 to
protect and declare its beneficial
authority to file such an action.
The company has not authorized the plaintiff to file any such
action. The derivative action filed ... principle as laid down is as simple as under:-
"Derivative action is subject to the doctrine of clean hands,
it is an equitable invention
derivative action only when the action complained of was ultra vires the
Company and it was as such asked as to whether the action complained ... derivative ones; in none of the
judgments cited by the senior counsel for the plaintiff, was
the person permitted to take derivative action on behalf
first defendant and his nominees. It is further submitted that a derivatives action has been held to lie at the instance of the beneficial owner ... have allowed a non-member to maintain a derivative action. Plaintiffs Nos. 1 and 2 also do not fit into the exceptions laid down
representative capacity of shareholder by way of 'derivative action'. At the same time he has tried to hold the impugned agreement within ... action in its individual capacity but also by way of a derivative action i.e. on its behalf and other shareholders for the welfare
actions, namely, the earlier actions by the respondents 1 and 2
approaching the Board of Directors and the CLB are different and distinct
actions ... derivative
action by minority shareholders. Since the present action taken by
respondents 1 and 2 is nothing but derivative action on the basis
derivative authority to sue;
(II) Darius Rutton Kavasmaneck Vs. Gharda Chemicals Limited
2014 SCC OnLine Bom 1851 holding that (a) derivative action is an
exception ... mechanism for derivative claims through Sections 260-264. While
the U.K. Act did not expressly abolish common law rights for derivative
actions, a Chancery
shareholders in RIPL
for the benefit of RIPL, it is a derivative action and therefore Section
14(1)(a) of IB Code will not apply ... Code is not attracted because it is a derivative
action for the benefit of RIPL, which is the corporate debtor qua NCLT
proceedings
shareholders of the proforma defendant. The suit is
misconceived and a derivative action is not maintainable. The suit could not
have been instituted ... jurisprudence, company actions are
divided into different groups:-
(a) Actions by the Company - for enforcement of Company's rights.
(b) Derivate actions
Arbitral Tribunal") and further restraining the petitioners from initiating any derivative action on behalf of the Company against Tamil Nadu Electricity Board ("TNEB ... meanwhile, the petitioners, being minority shareholders, have initiated a "derivative action" against TNEB invoking the arbitration clause contained in the PPA by filing
