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The High Court dismissed a family-company dispute over Ngorika Bus Transport Company Limited, finding no proof of forgery, fraud, or wrongful asset holding.
The High Court lacks jurisdiction to entertain a fresh suit seeking to set aside or challenge a sale of shares confirmed in execution of a decree, as such matters must be addressed by the executing court under the Civil Procedure Code. The plaint does not disclose a valid cause of action, and the reliefs sought would amount to an abuse of court process by attempting to nullify a sale already confirmed by the court.
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The so-called caveat lodged by the 1st Respondent has no force of law as the Companies Act does not provide for such a caveat. Furthermore, Afriscan Construction Company Ltd, against whose records the caveat was lodged, is not a party to the proceedings, and the court cannot make orders affecting a non-party. Therefore, the application to remove the caveat is struck out.
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The court upheld a settlement agreement and share transfer, rejected claims of economic duress, and dismissed the plaintiff’s suit while granting the counterclaim in part.
The High Court dismissed a winding-up petition over Diesel & Auto Electric Services (DAS) Ltd, finding no proved fraud and no just and equitable basis to wind up the company.
The petitioners failed to prove with explicit evidence that the affairs of Builders (V.M. Chavda) Ltd were conducted in a manner unfairly prejudicial to their interests. The dispute primarily concerns recovery of shares, which is not within the purview of section 233 of the Companies Act. The petitioners did not demonstrate locus standi or timely action, and allegations of fraud were not substantiated to the required standard.
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