{"id":204256,"date":"2001-11-16T00:00:00","date_gmt":"2001-11-15T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/deepa-goyal-vs-nanda-devi-builders-p-ltd-and-on-16-november-2001"},"modified":"2018-10-10T09:53:35","modified_gmt":"2018-10-10T04:23:35","slug":"deepa-goyal-vs-nanda-devi-builders-p-ltd-and-on-16-november-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/deepa-goyal-vs-nanda-devi-builders-p-ltd-and-on-16-november-2001","title":{"rendered":"Deepa Goyal vs Nanda Devi Builders (P) Ltd. And &#8230; on 16 November, 2001"},"content":{"rendered":"<div class=\"docsource_main\">Company Law Board<\/div>\n<div class=\"doc_title\">Deepa Goyal vs Nanda Devi Builders (P) Ltd. And &#8230; on 16 November, 2001<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>  S. Balasubramanian, Vice-Chairman   <\/p>\n<p> 1. The petitioner being the holder of 500<br \/>\nshares in the paid up share capital of Nanda Devi Builders (P) Ltd. (the company)<br \/>\nhas filed this petition alleging acts of oppression and mismanagement in the affairs<br \/>\nof the company in terms of section 397\/398 of the Companies Act, 1956 (the Act).\n<\/p>\n<p> 2. A summary of the petition is : The company has built a multi-storied commercial<br \/>\ncomplex in Prasnat Vihar, Delhi, known as Nanda Devi Tower. This Tower consist<br \/>\nof 5 floors including a basement. The petitioner had booked the entire 3rd floor<br \/>\nadmeasuring 1,450 sq. ft. in the said complex in 1989 at the rate of Rs. 675 per sq. ft.<br \/>\nShe had paid a sum of Rs. 3.4 lakhs in various instalments from July, 1989, to January,<br \/>\n1991. She had also paid Rs. 50,000 in July, 1999, for 500 shares at Rs. 100 each. As<br \/>\nagainst a sum of Rs. 3.4 lakhs paid by her, the company has reflected a sum of Rs.<br \/>\n1.25 lakhs only in the balance sheet for the year 1991-92. The respondents have not so<br \/>\nfar handed over the possession of the premises to her, nor have asked for payment of<br \/>\nthe balance amount, nor have refunded the amount paid by her. Further, they have<br \/>\nalso not delivered the share certificates for the 500 shares allotted to her and also for<br \/>\n50 shares allotted to her son. However, the petitioner has learnt that the entire 3rd<br \/>\nfloor which was allotted to her has subsequently been sold to the friends of the respondents.<br \/>\nFurther, the company has also issued 1,200 further shares without any<br \/>\noffer to the existing shareholders. The company has also proposed to remove one<br \/>\nShri M.R. Jindal who is representing the minority shareholders form the Board. All<br \/>\nthese acts would indicate that the respondents are carrying on the affairs of the company<br \/>\nin a manner prejudicial to the interest of the shareholders and the company and<br \/>\nas such, an investigation should be ordered into the affairs of the company and the<br \/>\nBoard should be superseded etc.  <\/p>\n<p> 3. In the reply, the respondents have submitted that this petition is not maintainable<br \/>\ninasmuch as the petitioner has sought for enforcing a private agreement. Further,<br \/>\nthis petition has been filed by the petitioner at the behest of Shri M.R. Jindal<br \/>\nwho had by himself filed another petition CP 7 of 2001, alleging acts of oppression<br \/>\nand mismanagement in the affairs of the company. As far as Rs. 3.4 lakhs as claimed<br \/>\nto have been paid by the petitioner, she paid only Rs. 1.25 lakhs as advance for<br \/>\nbooking the said floor as against a total consideration of Rs. 9.8 lakhs. As on<br \/>\n31.3.1992, there were  unsecured loans of Rs. 1.3 lakhs in the name of Shri K.C. Goel,<br \/>\nthe husband of the petitioner, and Rs. 75,000 in the name of Shri Manoj Goel, son of<br \/>\nthe petitioner. Since the petitioner had failed to pay the full consideration, the allotment<br \/>\nwas cancelled and the amount of Rs. 1.25 lakhs paid by her was forfeited as<br \/>\nearly as in 1993. Shri K.C. Goel was a director of the company during the period.<br \/>\nLikewise, Shri  M.R. Jindal who was also a director has signed the balance sheet of the<br \/>\ncompany for the year 1995 and for 1996 to 2000. The unsecured loan of Rs. 1.25 lakhs<br \/>\nand Rs. 75,000 were forfeited in the year 1994-1995 and 1995-96, respectively. Therefore,<br \/>\nthe question of handing over the 3rd floor to the petitioner did not arise. Further,<br \/>\nthe petitioner had not voiced any grievance on this score for over 8 years. As far<br \/>\nas the sale of the flats at 3rd floor is concerned, they were sold in February, 1994, and<br \/>\nthe proceeds of sale have been credited to the accounts of the company. As far as<br \/>\nissued of 1,200 shares is concerned, the same was made in 1993 and as such, the Petitioner<br \/>\ncannot raise a grievance after a gap of long 8 years. In regard to the removal of<br \/>\nShri Jindal as a director is concerned, in the extraordinary general meeting held on<br \/>\n24.2.2001, the general body passed a resolution in terms of section 284 of the Act to<br \/>\nremove him as a director, but the same has not been given effect to in view of the<br \/>\ninterim order passed by this Bench on 5.2.2001 in CP 7 of 2001. Share certificates in<br \/>\nrespect of 500 shares of the petitioner and 50 shares in respect of his son were delivered<br \/>\nto them as early as in 1989 itself.\n<\/p>\n<p> 4. Shri Aggarwal and Shri Mathur appearing for the respective parties reiterated<br \/>\nthe averments made in their respective pleadings. Even though the main allegation<br \/>\nof the petitioner relates to the 3rd floor in Nanda Devi Tower, yet we find that she<br \/>\nhas not sought for any relief in regard to allotment of the same to her. Further, even if<br \/>\nthere had been a prayer as such, we could not have considered the same in the present<br \/>\nproceedings inasmuch as private agreements cannot be enforced through this<br \/>\npetition. Even otherwise, we note that the company had already forfeited the advance<br \/>\npaid by her as early as in 1993 after cancelling the allotment. Therefore, nothing<br \/>\nsurvives on this allegation. As far as the allotment of 1,200 shares is concerned, since<br \/>\nthe allotment was made as early as in 1990, we cannot look into the bona fide of this<br \/>\nallotment after a long gap of 8 years. In regard to the removal of Shri Jindal as a director,<br \/>\nthis matter is already before us in CP 7 of 2001 [since reported as Jindal (M.R.)<br \/>\nv. Nanda Devi Builders (P) Ltd. and others (2002) 1 Comp LJ 410 (CLB)]. Thus, we find<br \/>\nthat the petitioner has not been able to establish any act of mismanagement and oppression<br \/>\nin the petition and, therefore, we dismiss this petition, with no order as to<br \/>\ncost, with liberty to the petitioner and her son to apply for duplicate certificates in<br \/>\nrespect of the shares allotted to them and, in case they so apply, the company should<br \/>\nissue duplicate certificates in accordance with law.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Company Law Board Deepa Goyal vs Nanda Devi Builders (P) Ltd. And &#8230; on 16 November, 2001 ORDER S. Balasubramanian, Vice-Chairman 1. The petitioner being the holder of 500 shares in the paid up share capital of Nanda Devi Builders (P) Ltd. (the company) has filed this petition alleging acts of oppression and mismanagement in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-204256","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Deepa Goyal vs Nanda Devi Builders (P) Ltd. 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