S.P. GARG, J.

IA No.4331/2017 (u/O 39 R-1&2 CPC) in CS(OS) 162/2017

1. CS(OS) 162/2017 has been filed by Asad Mueed (hereinafter referred to as ‘plaintiff’) primarily against Hammad Ahmed (hereinafter referred to as ‘Second defendant’) and Hamid Ahmed (hereinafter referred to as ‘Third defendant’) for their removal from the position of trustees of Hamdard Laboratories (India) (hereinafter referred to as ‘HLI’).

2. Averments in the plaint are that Abdul Mueed, father of the plaintiff and the defendant No.4 being the eldest son of the founder was the first Chief Mutawalli of HLI; he assumed the office of Chief Mutawalli in 1974 and held it till his demise in March, 2015.

3. In 2006, the second defendant who was in-charge of the Marketing and Sales Department of HLI was ousted due to his involvement in various acts of defalcation of organizational monies. Various civil and criminal proceedings were initiated against him. In 1998, the second defendant as head of Marketing & Sales of HLI appointed Eden Enterprises Pvt. Ltd., a non-existent entity as distributor of HLI products. The said entity came into existence after the appointment of Eden Enterprises Pvt. Ltd. as distributor; it had a share capital of Rs.3,000/- and its promoter was one Shammi Tandon, second defendant’s subordinate. Within a span of few months, HLI products worth crores were given to the said enterprise by the second defendant being head of Marketing & Sales without payment of sale price. The said enterprise did not pay the price of the goods as a result wrongful loss of Rs.1.76 crores was caused to HLI. Criminal Complaint Case No.7/1/2012 is pending against the second defendant and others in this regard, besides CS(OS) 59/2011 for recovery of the siphoned goods/proceeds.

4. It is further averred that in 2000, the second defendant being head of the Marketing and Sales of HLI ordered supply of approximately 10,000 tree guards for advertising without inviting quotation or tender. The price was fixed by private negotiation by the second defendant. The goods were approved for payment by the second defendant in his own hand on 19.04.2000 and its payment was made in a single tranche on 31.03.2000 to the tune of Rs.1.74 crores. On enquiry, it revealed that the advertising agency hired by the second defendant had no advertising rights for the locations mentioned on the 16 invoices. It resulted in a wrongful loss of Rs.1.74 crores to HLI. Criminal Complaint No.5480/2010 is pending before the concerned Court against the second defendant for misappropriation, criminal breach of trust, cheating and falsification of accounts and he has been summoned to face trial; CS(OS) 855/2011 is also pending against the second defendant and others for recovery of the siphoned monies. FIR No. 89/14 is also pending investigation with Economic Offences Wing of Delhi Police against the second and third defendants.

5. It is further pleaded that after the death of the plaintiff’s father in March, 2015, the second and third defendants mounted pressure upon the plaintiff and defendant No.4 for withdrawal/compromise of the pending cases. On refusal to do so, they started creating obstructions in the prosecution of the cases and the working of HLI. On 03.11.2016, the second and third defendants purported to terminate the services of Mr. S. Rajagopalan, AGM (Finance), authorised representative of HLI and a prime witness in criminal cases. The second and third defendants also terminated the services of Mr. Javed Akhter, Sr. Manager (Legal) who was overseeing the cases on behalf of the management of HLI. The said defendants had no authority to terminate their services and their action was motivated and malicious.

6. It is further averred that on 02.01.2017 account maintained with defendant No.1 was blocked as a result of which various payments to statutory bodies and salaries to the employees could not be made. Even the payments to the advocates representing HLI before various Courts were not rel