ORDER

MAIN RELIEFS PRAYED FOR

(a)Direct the Respondent No. 1 Company not to alienate, dispose or transfer the properties previously charged by the Respondent No. 1 Company in favour of City Union Bank Limited in relation to credit facilities availed, which properties are not mentioned in the sanction letters dated 15.02.2019 and 28.12.2019 and issued by City Union Bank Limited to the Respondent No. 1 Company;

(b)Direct the Respondent No. 1 Company not to alienate, dispose or transfer the freehold properties of the Respondent No. 1 Company;

(c)Direct the Respondent No. 1 Company to take action to release the charge over the properties and obtain the relevant documents for the properties formerly charged by the Respondent No. 1 Company in favour of City Union Bank Limited in relation to credit facilities availed, which properties are not mentioned in the sanction letters dated 15.02.2019 and 28.12.2019 issued by City Union Bank Limited to the Respondent No. 1 Company;

(d)Direct the Respondent No. 1 Company to take action to release the charge over the properties and obtain the relevant documents for the properties formerly charged by the Petitioner No. 1 in favour of City Union Bank Limited in relation to credit facilities availed, which properties are not mentioned in the sanction letters dated 15.02.2019 and 28.12.2019 issued by City Union Bank Limited to the Respondent No. 1 Company;

(e)Direct the Respondent No. 1 Company to provide access to the Petitioner No. 1 to inspect the properties of the Respondent No. 1 Company;

(f) Direct the Respondent No. 1 Company to provide notice of meetings of the board of directors to the Petitioner No. 1 (in his capacity as director);

(g)Direct the Respondent No. 1 Company to provide the notice of meetings of the shareholders to the Petitioner No. 1 and Petitioner No. 2; 

(h)Direct the Respondent No. 1 Company to provide access to the books of accounts of the the Respondent No. 1 Company to the Petitioner No. 1 and Petitioner No.2;

(i) Take appropriate action against the Respondent No. 2 for his acts of oppression against shareholders and mismanagement of the Respondent No. 1 Company;

(j) Take appropriate action against the Respondent No. 3 for his acts of oppression against shareholders and mismanagement of the Respondent No. 1 Company; and (k)Pass such further and other orders as this Hon'ble Tribunal may deem fit and proper.

1. The Respondent No.1 is a Company incorporated under the provisions of The Companies Act, 1956 on 15.03.1996, having its registered office at 5-4-33/4, Sterling Apartments, Distillery Road, Secunderabad, Hyderabad-500003. The main objects of the Respondent No.1 are “to carry on the business of manufacturers of dealers in exporters and importers of all varieties of steel, special steel, ……. and to manufacture, sell and deal in all or any of the by- products which will be obtained in the process of manufacturing these steel products”. The authorized share capital of Respondent No.1 is Rs. 7,00,00,000/- divided into 70,00,000 shares of Rs. 10 each. The paid-up share capital is Rs. 6,45,64,890/- divided into 64,56,489 shares of Rs. 10 each.

2. It was stated that Petitioner No.1 holds 2,71,190 equity shares amounting to 4.2%, Petitioner No.2 which is a HUF holds 4,71,609 equity shares and Petitioner No.3 holds 4,78,126 equity shares in the Respondent No.1 Company. It was stated that the Petitioners herein holds a total of 12,20,925 equity shares in Respondent No.1 amounting to 18.91% of total issued share capital and thereby tries to establish their locus standi to bring the captioned Petition.

3. It was stated that Respondents No.2, 3, 4 & 5 holds 9.75%, 3.65%, 7.51% and 12.02% of total issued share capital respectively in the Respondent No.1 Company. It was stated that Respondent No.1 is a closely held family company by the members of family of Petitioner No.1, Respondents No. 2 & 3. It was also stated that Respondent No.2 is the father of Petitioner No.1 and Respondent No.3 is the