Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Companies Act 1956 - s. 172 rlw s. 53 1956 - s.397 rlw s.398 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Companies Act, 1956 (1 of 1956) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Company Law:Companies Act, 1956 - s. 172 r/w s. 53 -- Meeting --Annual General Meeting (AGM) - Service of notice - Complaint by Appellant Director that he did not receive notice of the AGM - Tenability of - Held: Not tenable - Appellant was party to Board meeting, wherein date, place and agenda of AGM was fixed -Also, Respondents produced "Certificates of Posting" to establish service of notice of AGM on Directors and other shareholders.Companies Act, 1956 - s.397 r/w s.398 - Oppression and mismanagement -Plea of Appellants that they invested huge sum in Respondent-company on promise that they would be made permanent directors of company but they were illegally removed from Directorship in AGM - Whether removal of Appellants from directorship was an act of oppression - Held, No - Material on record revealed that there was no specific promise that Appellants would be given Directorship permanently - Provision for retirement of one- third directors in a year by rotation had been also disclosed - Theory of 'legitimate expectation' had no application.Companies Act, 1956 -- s.397 - Oppression -- Mere unfairness does not constitute oppression - On facts, Appellants were given right to subscribe to 'right issue' along with all others in same proportion - Hence, no prejudice had been caused to them on account of issue of "right shares".Share capital-Allotment of "right shares" to public - Held: Right shares cannot be offered to outsiders without special resolution by 2/3rd majority shareholders. |
Judge | Honble Mr. Justice P. Sathasivam |
Neutral Citation | 2008 INSC 235 |
Petitioner | Shri V.s. Krishnan And Ors. |
Respondent | M/s. Westfort Hi-tech Hospital Ltd. And Ors. |
SCR | [2008] 3 S.C.R. 184 |
Judgement Date | 2008-02-21 |
Case Number | 1473 |
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