RAM PARSHOTAM MITTAL & ANR. versus M/S HILLCREST REALTY SDN.BHD. & ORS. ETC.

RAM PARSHOTAM MITTAL & ANR. versus M/S HILLCREST REALTY SDN.BHD. & ORS. ETC.

Upon the resolutions adopted on 30th September, 2002, Hotel Queen Road Pvt. Ltd. became a public company by operation of law; accordingly, Hillcrest Realty, as a cumulative preference shareholder with unpaid dividends for two years, acquired voting rights under Section 87(2)(b) of the Companies Act, 1956.

Parties
Petitioner: Ram Parshotam Mittal; Petitioner: Mrs. Sarla Mittal; Respondent: M/S Hillcrest Realty Sdn. Bhd.; Respondent: Hotel Queen Road Pvt. Ltd.
Jurisdiction
India
Judgment Date
20 July 2009
Procedural Posture
Special Leave Petition (civil) / Disposal at Admission Stage
Outcome
Special Leave Petitions dismissed
Legal Topics
Conversion of Private Company to Public Company, Preference Shareholder Voting Rights
Company Law Conversion of Private Company to Public Company Preference Shareholder Voting Rights

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Parties

Ram Parshotam Mittal

Petitioner

Mrs. Sarla Mittal

Petitioner

M/S Hillcrest Realty Sdn. Bhd.

Respondent

Hotel Queen Road Pvt. Ltd.

Respondent

Procedural Posture

Special Leave Petition (civil) / Disposal at Admission Stage

Legal Issues

  1. 1 Whether Hotel Queen Road Pvt. Ltd. was converted from a private company to a public company by resolutions dated 30th September, 2002
  2. 2 Whether Hillcrest Realty, as a preference shareholder, was entitled to exercise voting rights under Section 87(2)(b) of the Companies Act, 1956

Ratio Decidendi

Upon the resolutions adopted on 30th September, 2002, Hotel Queen Road Pvt. Ltd. became a public company by operation of law; accordingly, Hillcrest Realty, as a cumulative preference shareholder with unpaid dividends for two years, acquired voting rights under Section 87(2)(b) of the Companies Act, 1956.

Court Disposition

Special Leave Petitions dismissed

Orders

  • High Court functioning as Trial Court requested to dispose of the suits expeditiously so that the management and affairs of Hotel Queen Road are not left in a state of uncertainty.
  • No order as to costs.