1981 (10) TMI 137 - HC - Companies Law

Summary

Issues:
Determining whether the petition was signed by the requisite number of members as per Companies Act, 1956.

Analysis:
The petition, filed under sections 397 and 398 of the Companies Act, 1956, by 468 persons was contested by respondents on the grounds of insufficient number of petitioners. The Act specifies that a petition can be filed by not less than 1/5th of the total members of the company. In this case, with a total of 1,545 members, the petition should have been filed by 309 members. However, it was purportedly filed by 468 members. Respondents raised objections regarding the authenticity of the signatures, with affidavits stating that some signatures were obtained under false pretenses. Affidavits also revealed instances of deceased individuals and duplicate entries among the petitioners, leading to a challenge of 287 names. Petitioners countered by presenting affidavits of 62 individuals claiming consent to be part of the petition. After detailed consideration, the court found that signatures were obtained through misrepresentation, rendering the consent invalid. Citing precedents, the court emphasized that consent must be voluntary and genuine at the time of filing the petition.

The court concluded that the petition was not presented by the requisite number of members as mandated by the Companies Act. Therefore, the petition was deemed liable to be dismissed. The judgment was based on the finding that the consent of certain petitioners was not genuine due to misrepresentation during the signature collection process. Consequently, the court dismissed the petition with costs, upholding the requirement of a valid and genuine consent from the requisite number of members for filing petitions under the Companies Act, 1956.