1. In this order I am considering CP No. 71/2005 filed by Shri J.K. Paliwal and Shri V.K. Paliwal under sections 397 and 398 of the Companies Act, 1956 (hereinafter referred to as ‘the Act’) alleging certain acts of oppression and mismanagement by the respondents particularly by R-8 namely Shri Ajay Paliwal son of petitioner No. 1 namely, Shri J.K. Paliwal.

2. The undisputed facts of the case are: The respondent company namely M/s. Paliwal Steel Ltd. was incorporated on 27-10-1970 as a private limited company and with effect from 25-8-1983 the word ‘private’ was deleted from its name as per the provisions of section 43A(1A) of the Act. The company is having its Regd. Office at Alpana Cinema Building, Model Town, Delhi. The authorised capital of the company at the time of incorporation was Rs. 7,50,000 divided into 7,500 equity shares of Rs. 100 each. The authorised capital was subsequently raised during August 1971 to Rs. 25,00,000 comprising 25,000 equity shares of Rs. 100. The paid up share capital of the company as on 30-9-2004 was Rs. 11,00,000 divided into 11,000 equity shares of Rs. 100 each. The main business of the company is that of Iron and Steel founders alloy and st