COMPANY LAW BOARD
K.K. BALU, J.
Aurobindo Pharma Ltd. -Appellant
Versus
Anil Kumar Poddar -Respondent
CP No.1217 of 2009
Decided On : 14-08-2009
R. Murari, Hema Srinivasan
In this Company Petition filed under section 284 of the Companies Act, 1956 ("the Act"), M/s Aurobindo Pharma Limited ("the Petitioner Company") is seeking (i) to exempt the Petitioner Company from circulating, publishing or reading out at its annual general meeting proposed to be held during September 2009, the notice of the respondent issued under section 284 and the explanatory statement dated 02.03.2009 and (ii) to refrain the respondent from misusing and abusing the powers conferred under section 284 from issuing any further notice for removal of Mr. Penaka Venkata Kam Prasad Reddy or any other director of the Petitioner Company, for the following among other reasons:
OThe respondent who became a shareholder on 07.1 1.2008 had asked for by virtue of his pre-printed letters dated 07.11.2008, 19.11.2008, 05.12.2008, 15,12.2008, 31.12.2008, 28.01.2009 and 17.02.2009, (i) copies of the minutes of the annual general meeting for the year ended 31.03.2007, (ii) list of top ten shareholders, with address, (iii) list of directors, (iv) register of investment, (v) register of contract, (vi) latest five year annual reports, and (vii) memorandum and articles of association of the Company, in response to which the Petitioner Company supplied most of the information, in terms of its letter dated 03.03.2009 and further advised the respondent to take inspection of the statutory records of the Petitioner Company at the registered office for any other additional details. The respondent in his yet another letter dated 05.03.2009 demanded copies of (i) register of investment, (ii) register of contract for the period from 01.01.2008 to 31.10.2008 and from 01.11.2008 to 04.03.2009, (iii) annual return, and (iv) Annual reports of all the subsidiary companies as well as particulars of employees, for which the Petitioner Company, in its letter dated 09.03.2009 informed the respondent to take inspection of the relevant documents, free of cost and further furnished copies of the annual return, annual report of subsidiary companies and particulars of employees. In the meanwhile, the respondent issued a special notice dated 02.03.2009 under section 284 of the Act, together with an explanatory statement, proposing a resolution at the ensuing annual general meeting to remove Mr. Penaka Venkata Ram Prasad Reddy from the office of director, on account of his inability to reply the letters of shareholders and to exercise control on working of the secretarial function by the Company Secretary. Thereafter, the respondent called for a copy of the register of investment from 01.04.2008 to 04.03.2009, in terms of his letter dated 16.03.2009, which was met on 18.03.2009 by the Company. This would show that the respondent has abused the powers conferred under section 284 of the Act and failed to act in the bonafide interest of the Company. The respondent has been indulging in issuing similar notices to several other companies evidencing his malafides. In these circumstances, the Petitioner Company is seeking suitable directions to exempt it from publishing, circulating or reading out the notice sent by the respondent under section 284 of the Act.
2. The respondent in his written submissions, submitted:
qBy virtue of proviso to section 284(4), the power of the CLB is limited to the representation of the director sought to be removed, not to be sent or read out at the meeting. There is no such request made in the petition and, therefore, the present petition not falling within the jurisdiction of the CLB, is not maintainable. The Petitioner Company's prayer for not notifying the proposed resolution and placing before the members at the annual general meeting cannot be made before the CLB, for want of any such power enjoyed by the CLB.
qThe respondent in his letter dated 07.1 1.2008 asked for (i) copy of the minutes of the last annual general meeting, (ii) list of top ten shareholders, (iii) list of individual directors, (iv) copy of Register of Investment, (v) co