same stipulation has been made in Section 398(2) also. According to Section 399 , the following members of a company shall have a right ... fifth of the total number of its members.
8. Sub-section (3) of Section 399 further states that "where any members of a company
file a petition under section 397 / 398 . This being the case, the maintainability in terms of section 399 , as long as it does not entail ... under section 214(2) read with section 235 to a non-member by the express provision contained therein is not given under section 399
preliminary objection that this petition was not maintainable in terms of section 399 . After hearing the preliminary objection, this Bench passed an order ... calls were due, the petition is not maintainable in terms of section 399 . Elaborating this point, he pointed out that the petitioners were holding
prerequisite for invoking jurisdiction under Section 397 / 398 , which has been sta-tutorily provided for in Section 399(1) , is that the complaint must come ... original percentage, qualifying him to apply under Sections 397 and 398 in terms of Section 399 . In other words, the allegation relating to the further
concluded transactions cannot be challenged under Sections 397 / 398 . No one can seek to acquire qualification under Section 399 alleging that shares issued ... kinds of share capital in Section 85 of the and Section 86 deals with voting rights. However, Section 399 neither mentions a particular type
orders under Section 397 / 398 cannot be issued. Therefore, according to him, when the petitioners have not fulfilled the requirements of Section 399 and they ... Section 399 , as is evident from the beginning of Sub-section (1) of Section 399 , is that the petitioners should be members of the company
company has challenged the maintainability
of the petition in terms of Section 399 of the Act.
2. Shri Aspi Chinoy, senior counsel for the respondent ... Section 399 , we may examine
that section. This section provides that to maintain a petition under Sections 397 / 398
in case of a company having
shares, do not qualify to file the petition in terms of Section 399 of the Act. Even though shares were issued in the name ... filing of the petition, the petitioners should satisfy their requirements of Section 399 . If these 4 lakh shares are omitted, then the petitioners collectively would
under Section 397 or Section 398 , but his share holding according to the respondents, accounts for 5.34%, thereby attracting disqualification under Section 399 . In this ... Section 397 or Section 398 . I may point out that one has to be a member before he can complain under Section 397 or Section
terms of Sections 397 / 398 of the Act. Therefore, the only other preliminary issue relates to provisions of Section 399 relating to qualification ... petition under Sections 397 / 398 can be instituted only by a members of a company satisfying the qualifications prescribed under Section 399 . The admitted position
