Needle Industries (India) Ltd., & Ors vs Needle Industries Newey (India) ... on 7 May, 1981
Section 405 is only an enabling provision to implead any managing director or any other director or the manager, of a company or any other person, who has not been impleaded as a respondent to any application under Section 397 or 398, provided that the Company Law Board is satisfied that there is sufficient cause for such impleadment. There is, however, no provision against the impleadment of a company. Furthermore, the respondents have not made out any prejudice which may be suffered on account of the impleadment of the company as a party to the proceedings before the Company Law Board. The parties are not to suffer on account of mere technicalities as laid down in Needle Industries (India) Ltd. v. Needle Industries Newey (India) Holding Ltd. . Therefore, there is no merit in the plea of the respondents. The prayer for amendment made by the applicant is allowed and the applicant is directed to file an amended petition by September 11, 2006, and serve a copy on the respondents. The matter is listed for hearing on September 15, 2006, at 2.30 p.m. to consider the interim reliefs claimed by the petitioner. Ordered accordingly.