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TMI Blog2022 (4) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... hallenged by one major group of equal shareholding, who are respondents in the present application. It is clear that the issues are closely related and If the interim reliefs are granted then it would have direct bearing on the outcome of the Main Petition. As held in Union of India Ors. v. Modiluft Ltd., [ 2003 (5) TMI 530 - SUPREME COURT ] Raja Khan v. Uttar Pradesh Sunni Central Waqf Board Anr., [ 2010 (11) TMI 201 - SUPREME COURT ], if interim relief is same as that of permanent relief, then it is not permissible because no case would be left for adjudication at the time of the final hearing. Unfortunately, there are unresolved issues between the two groups running the company mainly relating to the appointment of Directors and effective control over the management of the company. The prime objectives of this Bench are to ensure the smooth running of the company so that its existing assets are utlised to the fullest, to protect the legitimate interests of both the groups of shareholders and those of the current employees - The raising of finance to meet the EMI requirements is only a short-term measure. While the applicants, who are effectively in control of the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ir shareholding at par with the respondents. 3. It is stated that respondents filed an interim application bearing Company Application No.91 of 2021 in CP No.41/Chd/Pb/2021 praying, inter alia, for maintenance of status quo in the Company. The same application was heard and in the interim order dated 14.07.2021, the following directions were issued:- The respondents are directed to maintain status quo with regard to 50-50 shareholding pattern as existing before the meeting of Board of Directors said to have been held today till further orders. Further, the respondent-company shall not alienate the properties of the company in any manner and shall not raise any loans without the prior approval of this Tribunal. 4. It is further stated that the Company has been receiving urgent notice from the Banks highlighting irregularity in their loan account. In this regard, the Bank letter dated 26.07.2021 is attached as Annexure-A/5 to the application. It is averred that to meet the working capital requirements of the Company, the applicant issued a Letter of Offer dated 18.07.2021 for the issue of further 15,00,000 equity shares of ₹ 10/- each aggregating to ₹ 1,50,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Arvinder Pal Sethi which is stated to be utilized for repayment of loans advanced by Punjab National Bank. The balance sheet as on 31.12.2021 filed by Diary No.00963/2 dated 15.02.2022 also indicates that the company has substantial revenue from its operations though presently, it is facing a liquidity crunch mainly to service its debt burden. 10. The applicants have inter alia prayed for passing an order allowing them to raise further share capital of the Company equally to meet its immediate working capital requirements and also to allow them to raise money by way of issue of further shares either to themselves or to third parties. 11. The issues before this Bench in this application are to consider whether there is a justification to allow the applicant to make further borrowings and also whether to allow the applicants to raise further share capital of the company by issuing shares to meet its immediate requirement of working capital. 12. Before going into the merits of the case, this Bench observes that the issues under consideration in this application are closely linked to the issues which are under the active considerations of this Bench in CA No.91/2021, CA No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- 15. Unfortunately, there are unresolved issues between the two groups running the company mainly relating to the appointment of Directors and effective control over the management of the company. The prime objectives of this Bench are to ensure the smooth running of the company so that its existing assets are utlised to the fullest, to protect the legitimate interests of both the groups of shareholders and those of the current employees. The raising of finance to meet the EMI requirements is only a short-term measure. While the applicants, who are effectively in control of the company, have made efforts to arrange the short-term finance required to manage the short term requirements, the issues of Directorship and effective management by two groups, each holding 50% of shares, is still under the active consideration of this Bench. 16. In this context, this Bench is also conscious of its own order dated 14.07.2021 in Company Application No.91 of 2021 in CP No.41/Chd/Pb/2021, extracted in para 4 above, where directions were issued to maintain the status quo qua share holding pattern pending the disposal of the main petition. In the course of the present proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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