Miscellaneous Civil Application No. 51 of 2009. Case: 1. Mohan, 2. Naprod Life Sciences Private Limited, 3. Babulal K. Jain, 4. Kamla Babulal Jain, 5. Manish Babulal Jain, 6. Sangeeta M. Jain, 7. Aarya M. Jain Vs 1. Bhanwarlal H. Chandak, 2. Rakesh Gupta, 3. Ambalal Heerahand Jain, 4. Rakesh Kataria, 5. Rakesh Ishwarlal Parmar, 6. Abhay U. Jain, 7. Rajul Jain, 8. Prem Mathur, 9. Ashok K. Jain, 10. Uttamchand K. Jain, 11. Pravin K. Jain, 12. Chanchal U. Jain, 13. Meena A. Jain, 14. Bharati P. Jain, 15. Prachi Pravin Jain, 16. Misal Pravin Jain, 17. Niyati Pravin Jain, 18. Rohan Ashok Jain, 19. Neon Laboratories Limited, 20. Vidyut J. Shah, 21. Mayank Shah. High Court of Bombay (India)

Case NumberMiscellaneous Civil Application No. 51 of 2009
CounselJanak Dwarkadas, D. D. Madon, Gaurav Joshi, Mayuresh Borkar, Dsk Legal, Dr. Virendra V. Tulzapurkar, Phiroze Palkhiwalla, M/s.Crawford Bayley And Company, Arif Bookwalla, Sunil Nair, Harinder Toor, Rajesh M. Yadav, Jaideep Raut, M/s.Chitnis And Company
JudgesP. B. Majmudar, J.
IssueCode of Civil Procedure, 1908 - Order 2, Rule 2, Section 24; Companies Act, 1956
Judgement DateSeptember 15, 2009
CourtHigh Court of Bombay (India)

Judgment:

P. B. Majmudar, J.

  1. This is a transfer application under Section 24 of Code of Civil Procedure, 1908, by which the petitioners have prayed that the suit pending before the City Civil Court, Bombay, being No.949 of 2007 may be transferred to the Original Side of this Court and be heard with the suit No.2189 of 2007, which is pending before the Single Judge of this Court. This transfer application is argued before me at a great length as if this Court is deciding the suit itself.

  2. It is the case of the petitioners that they have already filed a suit in the City Civil Court, Bombay, being S.C.Suit No.949 of 2007 praying that the appointment on the Board of Directors of Plaintiff No.2 Company by which the defendants of the said suit have been appointed as directors is illegal, devoid and contrary to the provisions of law and the said appointment is not required to be acted upon. The present petitioners who are the plaintiffs in the suit have prayed for decree for permanent injunction restraining the defendants to project themselves as directors of plaintiff No.2 company pursuant to the alleged Form No.32 dated 12-02-2007 or acting or purporting to act as a director of the plaintiff No.2 company pursuant thereof in any manner.

  3. It seems that the dispute is going on between the family members of the plaintiffs and defendants. It is the case of the plaintiffs before the City Civil Court that in order to put an end to the dispute, it was decided to enter into a family settlement between the family members of both the sides and that in February 2004, the parties agreed to settle the dispute in a particular manner. Since this Court is not required to go into the details of the family settlement, it is not necessary to highlight the same in detail.

  4. According to the petitioners/original plaintiffs, the defendants subsequently backed out from the said family settlement and has tried to backtrack from the said settlement. It is also the case of the petitioners that in the meanwhile, the petitioners came to know that the respondents in violation of the provisions of the Companies Act, 1956, made an attempt to appoint directors on the board of Plaintiff No.2 company without following due process of law as per the Companies Act, 1956. A suit before the City Civil Court is accordingly filed for the appropriate reliefs, as pointed out earlier, regarding appointment of the directors on the board of plaintiff No.2 company. In the plaint before the City Civil Court, a reference is also made regarding family settlement sought to be arrived at by the plaintiffs and defendants. Plaintiffs also obtained a leave under Order II Rule 2 of Code of Civil Procedure, 1908 for filing substantive suit for specific performance of the family settlement. On the basis of the same, the plaintiffs also instituted...

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