Vipin Sanghi, J.

With the consent of the parties, I have finally heard the appeal and I proceed to dispose of the same.

1. This company appeal under Section 10F of the Companies Act 1956 (for short, the `Act) is preferred by the Appellants, M/s. Dayagen Private Ltd. (for short, `the company) and one Mr. Vinod Pandita. According to respondent nos.1 and 2, Mr. Vinod Pandita was working in the capacity of an accountant in the company and was appointed as a Director of the company in the year 2002. The appeal is directed against the order dated 16th May 2007 passed by the Company Law Board (for short the Board) in Company Petition No. 5/2007. By the impugned order the Board declined to dismiss the Company Petition (being C.P.No. 5/2007) filed by Respondent Nos. 1 and 2 under Sections 397, 398 of the Act, upon hearing C.A. No. 59/2007 whereby the maintainability of the said petition was challenged by the Appellants. The Board has directed CA No. 59/2007 to be considered along with the company petition.

2. Late Sh. V.P. Punj was holding 980 equity shares out of the total 1000 Equity Shares issued by the Appellant Company. The remaining 20 equity shares were held by Respondent No