2021 (4) TMI 946 - Tri - Companies Law

Oppression and mismanagement - siphoning of funds - bogus entries in the books in respect of raw materials and components consumed during the year 2017-18 - fictitious purchases - sections 241 and 242 of the Companies Act, 2013 - HELD THAT - The Interim Reliefs granted in respect of each of the company petitions shall be in effect until further orders. The respondents in each of the Company petitions are hereby granted four weeks' time to file their reply affidavit. Copies of the reply affidavit shall be served on the Ld. Authorised Representative for the Petitioners. The Petitioners shall thereafter have a further period of four weeks within which to file a rejoinder, if need be. Copies of the rejoinder shall be served on the counsel on record for the respondent - List this matter for further consideration on 24.06.2021.

Summary

Issues:
1. Allegations of oppression and mismanagement under sections 241 and 242 of the Companies Act, 2013.
2. Interim reliefs sought by petitioners in various company petitions.

Detailed Analysis:

Issue 1: Allegations of oppression and mismanagement
The main Company Petitions were filed alleging oppression and mismanagement in the affairs of the respective Companies under sections 241 and 242 of the Companies Act, 2013. The allegations included siphoning of funds, bogus entries in books, fictitious purchases, and more. Specific instances of misconduct were detailed, such as preventing petitioners from entering premises, improper salary payments to directors, and attempts to manipulate financial records. The petitioners sought interim reliefs to address these issues.

Issue 2: Interim Reliefs sought by petitioners
In the Company Petitions, interim reliefs were requested to address the alleged oppression and mismanagement. The reliefs included maintaining status quo of assets and investments, allowing directors access to company premises and records, calling meetings with proper notice and agenda, and providing financial statements regularly. The respondents were directed to file their affidavit in reply to the petitions within four weeks, and the interim reliefs granted were to be effective until further orders. The matter was listed for further consideration on a specified date.

The Tribunal considered the submissions of both parties and granted interim reliefs in favor of the petitioners, emphasizing the importance of maintaining status quo and allowing directors to fulfill their duties effectively. The respondents were given time to respond to the petitions, and the petitioners were granted an opportunity to file a rejoinder if necessary. The detailed orders for each Company Petition were specified, and the proceedings were scheduled for further consideration on a specific date.