Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Minutes of meeting Companies Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Companies Act, 1956-Sections 175, 193-Meeting convened by respondents 1 to 3 , without serving any notice upon appellant no. 1 and other directors supporting him and passing resolutions removing appellant no. 1 and instead appointing respondent no. 1 as Chairman and appointing 12 additional directors-Challenge to-Consent Order passed by the High Court that a fresh meeting of the Board of Directors be held under the chairmanship of a third person, one S to reconsider afresh the agenda of the said impugned meeting-Held, as a consequence of the consent order, what was resolved previously in the impugned meeting is wiped off and has become non-est-Thus, the resolution appointing respondent no. 1 as Chairman of the Board and consequently authority of respondent no. 1 to preside under it also dissolved-No fresh authority having been conferred, respondent no. 1 could not preside in Board's meeting-In view of this, the appointment of 12 additional Directors cannot be sustained as the resolution appointing them stands obliterated in view of the consent order passed by the High Court-Further, the resolution passed in another meeting chaired by respondent no. 1 regarding the induction of new life members also does not survive after passing of the consent order-However, in order to keep the interest of the life members, their cases directed to be placed before the next Annual General Meeting to be held for its consideration. Minutes of meeting-Recording of-Minutes recorded by the secretary and the one by the Chairman at variance with each other-Acceptance of-Held, the Chairman of the Board is under an obligation to authenticate the minutes of the meeting of the Board and is empowered to exercise an absolute discretion in regard to the inclusion or non-inclusion of any matter in the minutes-In the present case because of conflict between two groups, a via media was found to eliminate the ensuing mistrust by appointing a third agreeable person as Chairman and even if there. be conflict, the minutes prepared by such third person is to be accepted and not of the other belonging to one of such conflicting ground-Hence, the minutes prepared by the Chairman are to be accepted as authentic and not the minutes prepared by the Secretary which are relied on by one of the conflicting groups. |
Judge | Hon'ble Mr. Justice M.B. Shah |
Neutral Citation | 2000 INSC 324 |
Petitioner | Nazir Hoosein And Anr. |
Respondent | Darayus Bhattena And Ors. |
SCR | [2000] Supp. (1) S.C.R. 269 |
Judgement Date | 2000-05-12 |
Case Number | 3425 |
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