( 1. ) THIS appeal under section 10-F of the Companies act, 1956 assails the order-dated 19. 7. 2007 passed by the Company Law Board [principal Bench, New Delhi] in Company Petition No. 117/2005 (Shri Sarabjeet singh Mokha Vs. M/s Marble City Hospital and Research Centre Private Limited and others ). ( 2. ) M/s Marble City Hospital and Research Centre Private Limited, Jabalpur having its Registered Office at 21, North Civil Lines, Near 2nd Bridge, Jabalpur is a Private Limited Company incorporated under the provisions of the Companies act, 1956 (hereinafter referred to as the act ). Appellants Dr. S. M. Hastak, Dr. (Mrs) Shobha Soni and Dr. Sanjay Nagraj alongwith respondent Shri Sarabjit Singh mokha are the subscribers to the Memorandum of Association of this Company, which was incorporated in the year 1997. The Company carries on with the activities of providing medical and health care facility in the city of Jabalpur and a hospital is established for the said purpose. The Company as indicated hereinabove was jointly promoted by the three appellants and respondent, who became Directors from the date of incorporation of the Company. It is averred that at the time when the dispute in the present case arose, apart from the appellants and the respondent, there were no other Directors in the Company. The authorized share capital of the company as on 31. 3. 2005 was Rs. 25 Lacs consisting of 25,000 shares of Rs. 10/- each. The issued share capital was Rs. 10 Lacs comprising of 1 Lac snares of Rs. 10/-each. All the share-holders namely, the appellants and the respondent, have subscribed in equal proportions i. e. 25% each and the share holding of the Company as on 31. 3. 2005 was 25,000 shares held by each of them amounting to Rs. 2,50,000/- i. e. . 25%. Being aggrieved by his deemed cessation as Director of the Company with effect from 31. 1. 2005 in terms of Section 283 (1) (g) of the Act, respondent Sarabjit Singh Mokha filed a petition purported to be under sections 397, 398, 237 (b) read with 399, 402 and 402 of the Act before the Company Law Board, Principal Bench, New Delhi. Alleging that his removal with effect from 31. 1. 2005, communicated to him vide notice-dated 18. 11. 2005 amounts to an act of oppression, a company petition was filed by the respondent for declaring the same to be null and void.

( 3. ) IT was further pointed out by the company petitioner/respondent that in the communication that took place between the parties, it has been disclosed that from the existing share capital, further 1,50,000 equity shares have been issued and after allocation of these shares, the share percentage of the company petitioner shri Sarabjit Singh Mokha is reduced from 25% to 10%. Challenge to this allocation of shares was also in the company petition. It was the case of the company petitioner that right from inception of the company in the year 1997, he and the appellants had equal percentage of shares, had loaned equal amount to the company and were functioning as Directors and were getting equal remuneration. The establishment of the Company and the hospital premises was in the leased out building held by the company petitioner and his family, for a consideration of Rs. 1. 6 lacs per month. All the appellants, who were Doctors by profession, have given their skill and equipments to the hospital on charge basis and till the date when the dispute arose, they have recovered 90% of the cost. It was further the case of the company petitioner that he had arranged for loans for the company by giving his personal guarantee, the entire building, fixtures and fittings belonged to him, he was in charge of all legal matters and administration of the company and in particular the hospital, but since September 2004 his remunerations were stopped and without any communication and intimation to him vide letter dated 18. 11. 2005, he has been informed that as he has not attended the requisite number of meetings, he ceases to be Director