Section 397 - Application to Tribunal for relief in cases of oppression. - Companies Act, 1956

Chapter VI PREVENTION OF OPPRESSION AND MISMANAGEMENT A. Powers of [1] [Tribunal] Application to [2] [Tribunal] for relief in cases of oppression . 397. (1) Any member of a company who complain that the affairs of the company [3] [are being conducted in a manner prejudicial to public interest or] in a manner oppressive to any member or members (including any one or more of themselves) may apply [4] to the [5] [Tribunal] for an order under this section, provided such members have a right so to apply in virtue of section 399. (2) If, on any application under sub-section (1) the [6] [Tribunal] is of opinion ___ (a) that the company's affairs [7] [are being conducted in a manner prejudicial to public interest or] in a manner oppressive to any member or members; and (b) that to wind up the company would unfairly prejudice such member or members, but that otherwise the facts would justify the making of a winding up order on the ground that it was just and equitable that the company should be wound up; the [8] [Tribunal] may, with a view to bringing to an end the matters complained of, make such order as it thinks fit. -------------------------------------------- Notes:- [1] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substitute for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [2] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substitute for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [3] Substituted by the Companies (Amendment) Act, 1963, Act 53 of 1963, section 10 for "are being conducted" w.e.f. 1-1-1964. [4] Fees prescribed is Rs. 5000, w.e.f. 1-4-2000. On notification of the commencement of the amendment, power will be transferred to the National Company Law Tribunal. [5] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substitute for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [6] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substitute for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991. [7] Substituted by the Companies (Amendment) Act, 1963, Act 53 of 1963, section 10 for "are being conducted" w.e.f. 1-1-1964. [8] Substituted for "Company Law Board" by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Earlier the quoted words were substitute for Court by the Companies (Amendment) Act, 1988, w.e.f. 31-5-1991.