Santhosh Raja Goud Cheekati vs Veera Vaishnavi Granite Pvt. Ltd. & Ors

Santhosh Raja Goud Cheekati ...Appellant

Vs.

Veera Vaishnavi Granite Pvt. Ltd. & Ors. ...Respondents

Present: For Appellant: - Mr. Rahul Unnikrishnan and Mr. Anuj Sarma, Advocates

For Respondent:-

ORDER

05.07.2018─ The appellant filed an application under Section 241 and 242

of the Companies Act read with Section 59 of the Companies Act alleging

'Oppression and Mismanagement' against the respondents. The 2nd

Respondent Mr. Bhopal Gaud, is the father of the Appellant and the 3rd

Respondent Smt. Rohini B.Gaud, is the mother of appellant who are also

shareholders of the 1st Respondent company. The National Company Law

Tribunal (NCLT), Hyderabad Bench, on hearing the parties held that the

removal of the Appellant as Director of the 2nd Respondent company in the

meeting held on 21st August 2017 is illegal and set aside the decision to restore

the appellant as the Director till next date of the Board of Directors Meeting.

The Tribunal also confirmed the appointment of 3rd Respondent (the mother) as

the Additional Director with a direction to transfer 50% of the shareholding to

the Petitioner in 1st Respondent company from the 3rd Respondent.

2. It is submitted that the appellant has no grievance against the impugned

judgement dated 15th May 2018 which has been allowed in his favour except a

part of it whereby his mother, 3rd Respondent has been made Additional

Director.

3. However, as under sub-section (1) of Section 242, it is always open to the

Tribunal to pass appropriate order as deemed fit and proper in a case in the interest of the company, having taken into consideration all relevant facts the

Tribunal while granted full relief to the appellant, who is the son of the 2nd

Respondent and 3rd Respondent, if allowed the 3rd respondent -mother to

function as Additional Director, we find no ground to interfere with the same.

In the absence of any merit, we dismiss the appeal with cost of Rs.

10,000/- to be paid by the Appellant in favour of the 3rd Respondent (his

Mother) within a month.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice Bansi Lal Bhat) Member(Judicial) sm/uk