Balasubramanian - In this order we are examining an important question of law as to whether the affairs of a holding company would include the affairs of its subsidiaries in a petition filed under sections 397/398/402 and 403 of the Companies Act, 1956 (‘the Act’) and whether by impleading the subsidiaries as respondents, a shareholder of the holding company, without satisfying the provisions of section 399 in respect of the subsidiaries, claim relief in respect of the subsidiaries in terms of section 402.

2. The instant petition has been filed by the petitioner holding 10 per cent shares in the 1st respondent-company (the company). The Company has 38 subsidiaries. Some of the subsidiaries are, in turn, holding companies of other subsidiaries. In this petition filed, the petitioner has arrayed 17 subsidiaries as respondents and he has sought certain reliefs against some of the subsidiaries in terms of section 402. The petitioner, other than holding 10 per cent shares in the company does not hold any shares in any of the subsidiaries except in one.

3. In this background, the company as well as some of the respondent subsidiaries, have questioned the maintainability of this petiti