Pradeep Kumar Garg vs Saharan Ashiyana Pvt. Ltd. & Ors

Pradeep Kumar Garg ...Appellant

Vs.

Saharan Ashiyana Pvt. Ltd. & Ors. ...Respondents

Present: For Appellant: - Mr. Arun Saxena and Ms. Nalini, Advocates.

ORDER

30.05.2018- The Appellant, a Shareholder has challenged the order

dated 28th March, 2018 passed by the National Company Law Tribunal

(hereinafter referred to as "Tribunal"), Allahabad Bench, Allahabad in

CP No. 80/ND/2016, which reads as follows:

"Sh. Arun Saxena along with Ms. Nalini, Advocates

for the petitioner. Sh. Jahangir Haider, Advocate

for the respondent no.4 and Sh. Krishna Dev Vyas,

CGSC for the ROC, Kanpur is present.

It appears from the record that by order

dated 26.05.2016, which was passed regarding

inspection of books of accounts and statutory

records of the respondent no.1 company. Since the

petitioner capacity is only that of a shareholder and

as a shareholder he doesn't have any right to

inspect the books of accounts.

-2-

In this company petition, till date no reply and

rejoinder has been filed by the respondents. Hence,

respondents are directed to file reply in the

company petition within three weeks from today

with a copy in advance to the opposite party,

thereafter, rejoinder, if any, may also file within

two weeks with a copy in advance to the opposite

party.

List the matter on 14th May, 2018 for

hearing along with all pending applications."

2. Learned counsel for the Appellant submits that earlier erstwhile

Company Law Board ordered to allow the Appellant to inspect the books

of accounts and statutory records of the 1st Respondent Company. The

Tribunal also allowed number of times to inspect the record but the

Respondents have not shown the same. Now by the impugned order

such right of the Appellant has been closed.

3. From the record we find that the Company Petition relates to

allege 'oppression and mismanagement' filed under Sections 397/398

read with Sections 402 & 403 of the Companies Act, 1956 (now Sections

241/242 of the Companies Act, 2013). The matter is pending since

2016. The Appellant was allowed number of times to inspect the books

of accounts since 2015. Now, more than two years has been passed and

Company Appeal (AT) No. 175 of 2018 -3-

if they have failed to inspect the records for one or other reasons, we are

of the view that the petition cannot remain pending for years together

which otherwise was required to be disposed of within three months in

terms with Section 422 of the Companies Act, 2013.

4. For the reasons aforesaid, we are not inclined to interfere with the

impugned order dated 28th March, 2018 passed by the Tribunal in CP

No. 80 (ND) 2016. The appeal is accordingly dismissed. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice Bansi Lal Bhat) Member(Judicial) Ar/g

Company Appeal (AT) No. 175 of 2018