( 1 ) THIS appeal under section 10-F of the Companies Act, 1956 (for short the Companies Act ) is directed against the order dated 20-4-2004 passed by the Company Law Board, Additional principal Bench, Chennai, in C. A. No. 37 of 2004, refusing to stay the proceedings in C. P. No. 25 of 2003, pending before it, until the conclusion of the suit proceedings in O. S. No. 61 of 2002, pending on the file of the XIII Junior Civil Judge, City Civil court, Hyderabad.

( 2 ) THE facts necessary for disposing of this appeal, may briefly be stated, and they run thus:

( 3 ) APPELLANT No. 1, namely M/s. RDF power Projects Limited (hereinafter referred to as the company ), incorporated by appellant No. 2 and the respondents, for establishment of power generation plant by using municipal solid waste. Appellant no. 2, it appears, was appointed as Managing director of the company vide resolution dated 27-12-1998 for a period of five years. While functioning as such, he states that the respondents who made abortive attempts to divert the funds of the company, were removed as Directors from the Board of the Directors of the company. While so, on the basis of a resolution allegedly passed on 3-1-2002, in the meeting convened by the respondents, Appellant No. 2 was removed as Managing Director of the company. In pursuance of the alleged resolution, when the respondents tried to interfere with the management of the company and made attempts to seize the records and books of accounts of the company, Appellant No. 2 on his behalf and on behalf of the company, lodged reports before the police against the respondents, and also a suit in O. S. No. 61 of 2002 accompanied with applications in LA. Nos. 24 and 25 of 2002, on the file of the VIII Junior civil Judge, City Civil Court, Hyderabad, to restrain the respondents from interfering with the management and functioning of appellant No. 2 as Managing Director of the company and also with its management, except in accordance with law.

( 4 ) WHILE so, the Trial Court by common order dated 30-10-2002, dismissed the interim applications. Against the said common order, Appellant Nos. 1 and 2 filed appeals in C. M. A. Nos. 366 and 369 of 2002 on the file of the III Additional Chief judge, City Civil Court, Hyderabad. The appellate Court, vide common order dated 11-3-2003, while setting aside the orders passed by the Trial Court, allowed the appeals, granting interim injunction as prayed for in the interim applications. When the respondents against the order dated 11-3-2003 passed in C. M. A. No. 369 of 2002, filed revision in C. R. P. No. 2364 of 2003 under Section 115 of the Code of civil Procedure, 1908 (for short the Code ) before this Court, the same by order dated 17-7-2003 was dismissed, giving liberty to file fresh revision under Article 227 of the Constitution of India. Thereafter, the respondents filed two revisions before this court under Article 227 of the Constitution of India in C. R. P. Nos. 3504 and 3460 of 2003 against the common order dated 11-3-2003 passed by the Appellate Court in c. M. A. Nos. 366 and 369 of 2002, which by common order dated 19-2-2004, were dismissed.

( 5 ) WHILE the suit proceedings before the civil Court were pending, the respondents filed petition in C. P. No. 25 of 2003 before the Company Law Board under Sections 111-A, 397, 398, 402 and 408 of the Companies Act, alleging acts of oppression and mismanagement in the affairs of the company by the appellants, and sought rectification of the register of members of the company. As the suit proceedings were pending, the appellants, having regard to the provisions of Section 10 of the Code, filed an application in C. A. No. 37 of 2004 before the Company Law board, to stay the proceedings in C. P. No. 25 of 2003, initiated by the respondents, until the conclusion of the suit proceedings before the Civil Court. The Company Law board, by order dated 20-4-2004, while refusing to grant stay of the proceedings befor