The Court has the discretion to revoke leave granted to file a suit under Clause 12 of the Letters Patent if it finds that the balance of convenience favors doing so.

PADMA KHASTGIR, J.

( 1 ) THIS application has been taken out by the Eastern Tea Co. Ltd. and its directors, the defendants Nos. 1, 6 and 9 for an order that the leave granted under Clause 12 of the Letters Patent be revoked and for stay of all further proceedings taken with this suit. It is the petitioner's case that the plaintiff has filed this suit against the defendants including the petitioners praying inter alia for a declaration that the investments made and/or maintained by the defendant company is in excess of the maximum provided under Section 372 of the Companies Act, 1956 hence those investments are illegal, wrongful, ultra vires the act, declaration that the defendants are not entitled to exercise their voting rights in respect of the said shares, direction for appointment of a receiver and also sale by the receiver of the investments, mandatory injunction directing the defendants for disposal of the said investments in accordance with the orders to be passed by this Court and for other consequential reliefs. Before filing this suit, the plaintiff obtained leave under Clause 12 of the Letters Patent. From the perusal of the plaint and the prayers framed thereunder it would appear that no relief has been claimed against the defendant No. 12 the Chartered Accountant and the plaint also does not disclose any cause of action against the defendants Nos. 2 to 11. The plaintiff has obtained leave under Clause 12 of the Letters Patent on the basis of the averments made in paragraphs 15 and 19 of the plaint which read as follows:"15. The aforesaid representation of the company and its Auditors that the accounts (together with notes thereon and documents annexed hereto) give the information required by the Companies Act, 1956 is wrongful, incorrect, mala fide and the same does not disclose the correct state of affairs in connection with the investments made by the defendant company and the company and/or its Auditors deliberately made the aforesaid misrepresentation and/or misleading comments to the shareholders and also to the plaintiff and such misrepresentation and/ or misleading comment which tanta-mounts to fraud on shareholders and the said Act was in fact made by the defendant company to the plaintiff who received the said balance-sheet within the jurisdiction of the Hon'ble Court. ""para 19. The defendant company however through its letter dated 23rd August, 1978 addressed to Shri Lalit Kumar Khettry, Advocate, represented that the defendant company made investment in conformity with the provisions of the Companies Act, 1956. The said letter was received by the said Lalit Kumar Khettry on or about the 28th Aug. , 1978 at his office at No. 10, old Post Office Street, Calcutta-700 001, within the jurisdiction of this Hon'ble Court. By the said letter the defendant company made fraudulent representation to the plaintiff and other share-holders in connection with the investment position of the defendant company in other bodies corporate including the bodies corporate in the same group as it would ex facie appear from the balance-sheet that the investments made exceeded the maximum limit provided in Section 373 of the said Act and holding of such investment is illegal and wrongful and the defendant company is not competent to legally hold such investment save for the self-aggrandisement and personal benefit of the defendants Nos. 2 to 11 and not in the interest and for the benefit of the defendant company and its share-holders. "

( 2 ) IN para. 27 it has been pleaded that the part of the cause of action has arisen within the jurisdiction of this Court as pleaded in those two paragraphs being paras. 15 and 19 respectively. It would appear from those averments that the plaintiff has alleged that it has received a copy of the balance-sheet within the jurisdiction of this Court. Secondly, it has been alleged that Mr. L. K. Khettry appearing on behalf of a person named Mr. Sukumar Bose wanted certain clarifica lions of the ba

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