DANKHA DEVI AGARWAL (DEAD) THROUGH LRS. versus TARA PROPERTIES PVT. LIMITED AND ORS.

DANKHA DEVI AGARWAL (DEAD) THROUGH LRS. versus TARA PROPERTIES PVT. LIMITED AND ORS.

Unusual suspicious circumstances surround withdrawal of appellant's suit and manner of change of advocate, suggesting it was not above board; High Court order dismissing recall application is set aside and matter remitted for fresh consideration of recall application, including investigation of manner of advocate change and ex parte withdrawal of suit; as to Board Resolutions removing respondents and allotment of shares, since not seriously contested and High Court's findings were not challenged, those appeals are dismissed.

Parties
Appellant: Dankha Devi Agarwal (Dead) through LRS.; Respondent: Tara Properties Pvt. Limited; Respondent: Bhagirath Agarwal; Respondent: Leela Agarwal
Jurisdiction
India
Judgment Date
17 August 2006
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Division Bench Order
Outcome
Appeal by appellant allowed; order remitted to High Court for fresh hearing. Appeal by company dismissed.
Legal Topics
Fraudulent Transfer of Shares, Management and Affairs of Company, Directorship Removal, Allotment of Shares, Compliance With Companies Act, Withdrawal of Suit, Recall of Withdrawal Order
Company Law Fraudulent Transfer of Shares Management and Affairs of Company Directorship Removal Allotment of Shares Compliance With Companies Act Withdrawal of Suit Recall of Withdrawal Order

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Parties

Dankha Devi Agarwal (Dead) through LRS.

Appellant

Tara Properties Pvt. Limited

Respondent

Bhagirath Agarwal

Respondent

Leela Agarwal

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Division Bench Order

Legal Issues

  1. 1 Whether purported transfer of shares by majority shareholder to minority was fraudulent and void
  2. 2 Whether removal of minority shareholders from board and allotment of shares was valid/legal
  3. 3 Whether withdrawal of suit based on forged signatures was valid

Ratio Decidendi

Unusual suspicious circumstances surround withdrawal of appellant's suit and manner of change of advocate, suggesting it was not above board; High Court order dismissing recall application is set aside and matter remitted for fresh consideration of recall application, including investigation of manner of advocate change and ex parte withdrawal of suit; as to Board Resolutions removing respondents and allotment of shares, since not seriously contested and High Court's findings were not challenged, those appeals are dismissed.

Court Disposition

Appeal by appellant allowed; order remitted to High Court for fresh hearing. Appeal by company dismissed.

Orders

  • High Court directed to rehear appellant's application for recall of withdrawal of suit afresh, considering suspicious circumstances.
  • Appeal against Board Resolution removal and share allotment dismissed; High Court's order stands.