2007 (8) TMI 778 - HC - Indian Laws

Summary

Issues Involved:
The judgment involves overlapping reliefs sought in a writ petition and a petition filed u/s 397-398 of the Companies Act regarding an increase in the authorized share capital, allegations of money laundering, and violation of RBI Regulations.

Increase in Authorized Share Capital:
The appellant challenged the increase in the authorized share capital of the company as null and void. The main thrust of both petitions was the increase in share capital. The court noted that the reliefs sought in both petitions were overlapping. The appellant was advised to bring the matter to the notice of the Director, Prevention of Money Laundering Act, as a remedy was available. The court declined to interfere with the order passed by the Single Judge due to the availability of alternative remedies.

Allegations of Money Laundering and RBI Regulations Violation:
Allegations of money laundering and violation of RBI Regulations were leveled against the private respondents. The reliefs sought in the company petition also included these allegations. The court allowed the appellant to file representations before the RBI and the Central Government regarding the allegations within two weeks. The court clarified that the order should not be construed as expressing any opinion on the merits of the allegations made by the appellant.

Disposition of the Appeal:
In accordance with the order, the appeal was disposed of. The court directed that a copy of the order be given to the counsel representing the Union of India.