Patel Ishwarbhai Bechardas V Add-Life Pharma Ltd[Guj]

C/AO/225/2012

Decided on : 05/12/2013

Sections 10 and 293(a) of the Companies Act, 1956 read with section 9 of the Code of Civil Procedure, 1908-

Appellant
PATEL ISHWARBHAI BECHARDAS & 8….(s)
Versus
Respondent(s)
ADD-LIFE PHARMA LTD THROUGH DIRECTOR CHANDRAKANT & 2….
Brief facts:

Defendant Company selling land without following the provisions of section 293(a) -shareholders application challenging such alienation and seeking restraint was rejected by the trial court order on the ground of bar of jurisdiction. The said order was challenged by the plaintiffs in the present appeal.

Decision : Appeal Allowed.

Reason :

  • Defendant No.1 Company illegally and with ulterior motive, so as to get personal financial benefit and thereby to put the Company in financial loss, sold the suit property in favour of defendant Nos. 2 and 3 in violation of rules and provisions of the Companies Act and therefore sale deed for such transaction is null and void.

  • Plaintiff was able to prove on record that defendant No1 has committed several irregularities under Companies Act and Companies (Passing of Resolution by postal ballot) Rules, 2001

  • Interim Order to some extent, to protect right of all parties is necessary.

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