1. In the Company petition filed under sections 235, 397, 398 read with sections 402 and 403 of the Companies Act, 1956 ("the Act") alleging a series of acts of oppression and mismanagement in the affairs of M/s. Saravana Stores Private Limited ("the Company"), on account of inter alia, illegal (a) appointment of the respondent Nos. 2 and 3 as additional directors; (b) exclusion of the petitioners from the office of director; (c) usurpation of control over the Company; (d) allotment of shares, the respondents have filed the present application under regulation 44 of the Company Law Board Regulations, 1991 for stay of all further proceedings before the Company Law Board, until disposal of the civil suits in C.S. No. 943/2002 and C.S. No. 36/2003 on the file of the High Court of Judicature at Madras.

2. Shri C. Harikrishnan, learned Senior Counsel, in support of the stay application submitted :

uS. Selvarathinam, since deceased, father of the second respondent, incorporated the first respondent company in August 2002, out of his own funds with an authorized capital of Rs. two crores divided into 20 lakhs equity shares of Rs. 10 along with his brothers, being the petitioners herein