INSTITUTE OF DATA MANAGEMENT (PVT) LTD

INSTITUTE OF DATA MANAGEMENT (PVT) LTD

VS.

IDM NATIONS CAMPUS (PVT) LTD AND OTHERS

SUPREME COURT
ALUWIHARE, J.
DEHIDENIYA, J.
THURAIRAJA, J.
SC/APPEAL/58/2016
HC/CIVIL/59/2014/CO
AUGUST 7, 2020

Companies Act, No. 7of 2007, sections 224, 225, and 521- Oppression and Mismanagement - Interim orders - Laches - lntervention of court into the affairs of a company

The petitioner being a shareholder filed this application in the Commercial High Court on the grounds of oppression and mismanagement of the 1st respondent company. Pending determination of the substantive matter,

an application was also made for an interim order. The Commercial High Court refused the interim order on the ground of laches, The petitioner appealed to the Supreme Court.

Held :

1. When the affairs of a company are being conducted in a manner oppressive to any shareholder (oppression) or prejudicial to the interests of the company (mismanagement),an eligible shareholder (as described in section 226) can make an application to court under section 224 or 225 of the Companies Act, respectively, seeking an order to remedy the situation.

2. On an applicatio

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