{"id":51258,"date":"2008-02-22T00:00:00","date_gmt":"2008-02-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/johny-chandy-vs-the-registrar-of-companies-on-22-february-2008"},"modified":"2014-02-02T10:15:42","modified_gmt":"2014-02-02T04:45:42","slug":"johny-chandy-vs-the-registrar-of-companies-on-22-february-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/johny-chandy-vs-the-registrar-of-companies-on-22-february-2008","title":{"rendered":"Johny Chandy vs The Registrar Of Companies on 22 February, 2008"},"content":{"rendered":"
Kerala High Court<\/div>\n
Johny Chandy vs The Registrar Of Companies on 22 February, 2008<\/div>\n
       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWA No. 446 of 2008()\n\n\n1. JOHNY CHANDY,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. THE REGISTRAR OF COMPANIES, KERALA,\n                       ...       Respondent\n\n2. THE CATHOLIC SYRIAN BANK LTD.,\n\n3. AIF CAPITAL DEVELOPMENT LIMITED,\n\n4. GPE III MAURITIUS DIRECT INVESTMENT LTD,\n\n5. SIGULER TUFF BRIC MAURITIUS,\n\n                For Petitioner  :SRI.MILLU DANDAPANI\n\n                For Respondent  :SRI.P.SANTHALINGAM\n\nThe Hon'ble the Chief Justice MR.H.L.DATTU\nThe Hon'ble MR. Justice K.M.JOSEPH\n\n Dated :22\/02\/2008\n\n O R D E R\n                            H.L.Dattu, C.J. &  K.M.Joseph, J.\n\n                            ----------------------------------------------\n\n                                  W.A.No.446 of 2008\n\n                            ----------------------------------------------\n\n                       Dated, this the 22nd day of February, 2008\n\n\n                                          JUDGMENT\n<\/pre>\n
K.M.Joseph,J.\n<\/p>\n<\/p>\n
                  The  writ petitioner  is  the  appellant in  this   Writ  Appeal.  The  writ<\/p>\n
petition   is   filed   challenging   Exhibit   P8   order   passed   by   the   Registrar   of<\/p>\n
Companies permitting allotment of shares.\n<\/p>\n<\/p>\n
                  (2)  The appellant filed Exhibit P3 complaint, which is an Investor<\/p>\n
Complaint, before the Registrar of Companies pointing out non-compliance with<\/p>\n
certain   rules   contained   in   Unlisted   Public   Companies   (Preferential   Allotment)<\/p>\n
Rules,   2003   (“Rules”   for   short).   The   appellant   and   others   had   also   filed   a<\/p>\n
petition   under   Sections   397   and   398   of   the   Companies   Act,   1956   (“Act”   for<\/p>\n
short),   before   the   Company   Law   Board.   This   Court   directed   Exhibit   P3<\/p>\n
complaint   to   be   considered   by     the   Registrar   of   Companies.   Accordingly,   as<\/p>\n
directed by the learned Single Judge, the Registrar of Companies proceeded to<\/p>\n
pass Exhibit P8 order.   In Exhibit P8 order, it is seen that the appellant made<\/p>\n
specific reference to Rule 6(a), 6(e) and 6(f) of the Rules besides Rule 7. The<\/p>\n
Registrar   of   Companies   called   for   explanation   from   the   2nd  respondent   Bank,<\/p>\n
which   was   forwarded   to   the   appellant   and   to   which   appellant   filed   reply,   and<\/p>\n
after referring to the contentions, finds that it cannot be said that the Bank has<\/p>\n
not complied with the requirements of the Rules. Further, it was found that the<\/p>\n
appellant has filed C.P.No.36 of 2006 under Sections 397 and 398 of the Act<\/p>\n
before the Company Law Board and   the issues raised presently were subject<\/p>\n
matter   of   litigation   before   the   Company   Law   Board   and   the   Company   Law<\/p>\n
Board   as   per   order   dated   3.8.2006   directed   that   the   Bank   is   at   liberty   to<\/p>\n
implement   the   resolution   passed   by   the   AGM   held   on   30.6.2006   pursuant   to<\/p>\n
W.A.No.446 of 2008                                   – 2 –<\/span><\/p>\n
item No.10 of the notice dated 31.5.2006. It is finally stated that:-<\/p>\n
                  “As   the   Company   Law   Board   has   already   ordered<\/p>\n
         implementation   of   the   resolution   passed   at   the   AGM   held   on<\/p>\n
         30\/6\/2006   as   item   10   of   the   notice   dated   31\/5\/2006,   which   is   the<\/p>\n
         subject matter being agitated in Exhibit P-3 by the complainant and<\/p>\n
         in the light of the order dated 3\/8.2006 passed by the Company Law<\/p>\n
         Board   in   C.P.36\/2006   giving   the   liberty   to   the   Bank   to   implement<\/p>\n
         the   resolution,   any   issue   which   relates   to   the   passing   of   the<\/p>\n
         resolution   also   stands   disposed   accordingly.   Hence   no   infirmities<\/p>\n
         regarding   passing   of   the   said   resolution   exists   and   the   Bank   as<\/p>\n
         directed by the Company Law Board is at liberty to implement the<\/p>\n
         resolution. Exhibit P3 is disposed of accordingly”.<\/p>\n<\/blockquote>\n
It was challenging the said order and also seeking a direction to the 1st respondent<\/p>\n
to issue necessary directions to the 2nd respondent Bank not to take on record the<\/p>\n
allotment made by the 1st respondent in violation of the Rules, that the present writ<\/p>\n
petition came to be filed.\n<\/p>\n<\/p>\n
                  (3)       The   learned   Single   Judge,   taking   note   of   what   is   stated   in<\/p>\n
Exhibit   P8   and   also   the   fact   that   the   matter   is   engaging   the   attention   of   the<\/p>\n
Company   Law   Board   in   C.P.No.36   of   2006,   took   the   view   that   there   is   no<\/p>\n
justification for a parallel proceeding and, accordingly, dismissed the writ petition. It<\/p>\n
was made clear that it was open to the appellant to urge all his contentions before<\/p>\n
the  Company   Law Board.  It  is stated   that  the   Court   was  sure that  the Board will<\/p>\n
decide the issue untrammelled by the findings in Exhibit P8.   It is being aggrieved<\/p>\n
by   the   aforesaid   judgment   that   the   petitioner   is   before   us   in   the   present   Writ<\/p>\n
Appeal.\n<\/p>\n<\/p>\n
                  (4)      We   heard  Sri.K.P.Dandapani,   learned   Senior  Counsel  for   the<\/p>\n
appellant and Sri.P.Santhalingam, learned counsel for the 2nd  respondent.<\/p>\n
W.A.No.446 of 2008                                     – 3 –<\/span><\/p>\n
                  (5)  Sri.K.P.Dandapani, learned Senior Counsel would point out that<\/p>\n
it is a clear case where Rule 6(a), 6(b) and 6(f) besides Rule 7 of the Rules have<\/p>\n
been   violated.     It   is   further   contended   that   Rule   4   of   the   Rules   has   also   been<\/p>\n
violated,   as   Rule   4   interdicts   that   the   special   resolution   should   be   implemented<\/p>\n
within   a   period   of   one   year.   He   contends   that   it   is   apparent   from   the   facts   and<\/p>\n
circumstances of this case that there is violation of Rule 4 as the special resolution<\/p>\n
was  implemented   beyond  the   period of  one  year.   He   would  submit   that   it is  true<\/p>\n
that the appellant had filed C.P.No.36 of 2006 before the Company Law Board, but<\/p>\n
that   would   not   prevent   the   statutory   authority   from   dealing   with   the   Investor<\/p>\n
Complaint   filed   by   the   appellant   and   the   Registrar   of   Companies   is   bound   to<\/p>\n
consider the matter.\n<\/p>\n<\/p>\n
                  (6)   It is not in dispute that the appellant is one of the petitioners in<\/p>\n
C.P.No.36   of   2006.   It   is   also   not   in   dispute   that   while   dealing   with   the   said<\/p>\n
Company Petition, the Company Law Board has, as an interim measure, permitted<\/p>\n
implementation   of   the   very   special   resolution,   which   is   the   subject   matter   of   the<\/p>\n
controversy, by order dated 3.8.2006.  What the appellant  essentially impugning is<\/p>\n
Exhibit   P8.     If   the   impugned   order   Exhibit   P8   is   set   aside   and   the   Registrar   is<\/p>\n
directed to reconsider the matter, it will be in the teeth of the order passed by the<\/p>\n
Company   Law   Board   which   was   seized   of   the   matter   on   a   petition   filed   by   the<\/p>\n
appellant   among   others   and   as   the   Senior   Counsel   submits   that   the   C.P.   itself<\/p>\n
stand dismissed, it will clearly amount to permitting parallel proceedings. The very<\/p>\n
case of the appellant is that the appellant is a minority share holder. He along with<\/p>\n
others   has   sought   to   challenge   the   passing   of   the   special   resolution   before   the<\/p>\n
Company   Law   Board.   If   that   be   so,   the   appellant   has   to   work   out   the   remedies<\/p>\n
available to him before the appropriate forum.   We  note that the contention of the<\/p>\n
appellant   regarding   violation   of   Rule   4   of   the   Rules,     which   is   sought   to   be<\/p>\n
W.A.No.446 of 2008                               – 4 –<\/span><\/p>\n
projected before us, is not a ground taken by the appellant before the Registrar of<\/p>\n
Companies in Exhibit  P3 complaint and he cannot  certainly be permitted  to raise<\/p>\n
such   a   contention   in   aid   of   his   attack   against   Exhibit   P8   order.   In   such<\/p>\n
circumstances,   we   are   in   agreement   with   the   reasoning   and   conclusion   of   the<\/p>\n
learned Single Judge.\n<\/p>\n<\/p>\n
                 We find no merit in this appeal and it is, accordingly, dismissed.<\/p>\n
\n\n\n\n\n\n\n\n                                                                   H.L.Dattu\n\n                                                               Chief Justice\n\n\n\n\n\n\n                                                                 K.M.Joseph\n\nvku\/-                                                                 Judge\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"
Kerala High Court Johny Chandy vs The Registrar Of Companies on 22 February, 2008 IN THE HIGH COURT OF KERALA AT ERNAKULAM WA No. 446 of 2008() 1. JOHNY CHANDY, … Petitioner Vs 1. THE REGISTRAR OF COMPANIES, KERALA, … Respondent 2. THE CATHOLIC SYRIAN BANK LTD., 3. AIF CAPITAL DEVELOPMENT LIMITED, 4. GPE III […]<\/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":[8,21],"tags":[],"class_list":["post-51258","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"\nJohny Chandy vs The Registrar Of Companies on 22 February, 2008 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/johny-chandy-vs-the-registrar-of-companies-on-22-february-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Johny Chandy vs The Registrar Of Companies on 22 February, 2008 - 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