1. The petitioners collectively holding 59.92% of the paid up capital of M/s Neela Spinning Mills Private Limited ("the Company"), before further issue of shares impugned in the Company Petition and constituting in excess of the one-tenth of the total members of the Company, aggrieved on account of, inter alia, the alleged illegal (a) issue of unissued capital of the Company to the respondents 2 to 4, without any consideration or need for such issue of further shares, thereby reducing the petitioners to a minority status; (b) appointment of the respondents 3 & 4 as directors; (c) cessation of the petitioners as directors; (d) fictious borrowing from the fifth respondent by the Company and creation of charge over the property of the Company in favour of the fifth respondent and (e) creation of records, as if the annual general meeting of the Company was held on 03.08.2001, have invoked the equitable jurisdiction of the Company Law Board under section 397 of the Companies Act, 1956, ("the Act"), seeking the following reliefs:

(a)to declare that the alleged appointment of the fourth respondent as a director of the Company in the board meeting said to have been held on 29.09.2001 i