DATED THIS the 27Th DAY of SEPTEMBER 2013 PRESENT THE
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IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 27 th DAY OF SEPTEMBER 2013
PRESENT
THE HON’BLE MR.JUSTICE DILIP B.BHOSALE
AND
THE HON’BLE MR.JUSTICE B.MANOHAR
COMPANY APPEAL NO.5/2012 c/w COMPANY APPEAL Nos.6/2012, 7/2012, 8/2012, 9/2012 & 10/2012
IN COMPANY APPEAL NO.5/2012
BETWEEN:
1.SEA ROCK INVESTMENTS LIMITED, SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
2.RAJMAHAL TRADE & INVESTMENTS PRIVATE LIMITED SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
3.ANIL SUNIL TRADE & INVESTMENTS PRIVATE LIMITED NO.701, NORTH BLOCK MANIPAL CENTRE 47, DICKENSON ROAD, BANGALORE-560042 …APPELLANTS
(BY SRI.ASHOK HARANAHALLI, SR.ADV. FOR SRI. P.N.MANMOHAN, ADV.)
AND:
1.CHITRAKALA INVESTMENT TRADE & BUSINESS FINANCE LIMITED
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SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
2.SRI TONSE SUDHAKAR PAI S/O T. RAMESH PAI AGED 59 YEARS R/A NO.5, CHITRAKALA, ANANTHNAGAR MANIPAL, UDUPI, KARNATAKA-576104
3.SRI R. MURALIDHAR RAO S/O T. NARAYANA RAO AGED 82 YEARS R/A NO.11, MEGHA MALHAR, VIDYARATNANGAR, MANIPAL, UDUPI, KARNATAKA-576104
4.SRI GARNET ALBERT REGO S/O GRATIAN CHARLES REGO AGED 77 YEARS R/A 19B, KRISHNAPUR COLONY, MANIPAL, UDUPI, KARNATAKA-576104
5.SRI SHASHINDRA BHAT S/O RAMAKRISHNA S BHAT AGED ABOUT 47 YEARS R/A H.NO. 5-96, BADAGABETTA, UDUPI, KARNATAKA-576119
6.SMT. JAYA S. PAI W/O T. SUDHAKAR PAI AGED 55 YEARS R/A CHITRAKALA, ANANTHNAGAR, MANIPAL, KARNATAKA-576104
7.SRI KAPPPETTU PRAKASH SHETTY S/O K. NARAYANA SHETTY AGED 61 YEARS RAMANI, SARALABETTU, MANIPAL, KARNATAKA-576104
8.SRI P.P. MURALIDHARAN S/O KARUNAKARAN KIZHITIL
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AGED ABOUT 53 YEARS R/A LAKHAN CO-OP HSG SOCIETY, FLAT NO.204, B WING, 2ND FLOOR RAMAKRISHNA NAGAR, CHINCH PADA ROAD, KALYAN (EAST), KALYAN, MAHARASHTRA-421306.
9.RAVINDRA PAL OBEROI S/O RAJENDRA OBEROI AGED 41 YEARS R/A BLDG, NO.6C, FLAT NO.304, ALICA NAGAR, LOKHANDWALA TOWNSHIP, KANDIVILI (E), MUMBAI, MAHARASHTRA-400101
10.SRI TARANATH C. KOTIAN S/O C.R. KOTIAN AGED ABOUT 58 YEARS 305, SHANTI APTS, BLDG NO.28, MILITARY RD, ANDHERI, NR RAJ OIL MILL, MUMBAI, MAHARASHTRA-400059
11.MANIPAL HOLDINGS PRIVATE LIMITED SYNDICATE HOUSE, UPENDRA NAGAR MANIPAL, KARNATAKA-576104
12.SRI U MUDDANNA S/O. CHANDU POOJARI AGED ABOUT 46 YEARS NIDAMBALLI, KELANEJARU KALYANPURA, UDUPI, KARNATAKA-576105 ...RESPONDENTS
(BY SRI.K.G.RAGHAVAN, SR.ADV. FOR SRI.ANUP S.SHAH LAW FIRM FOR R1, R2, R4 TO R12)
IN COMPANY APPEAL NO.6/2012
BETWEEN:
1.SEA ROCK INVESTMENTS LIMITED
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SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
2.CHITARKALA INVESTMENT TRADE & BUSINESS FINANCE LTD SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
3.JAI BHARATH MILLS PRIVATE LIMITED SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104 ... APPELLANTS
(BY SRI.ASHOK HARANAHALLI, SR.ADV. FOR SRI. P.N.MANMOHAN, ADV.)
AND:
1.RAJMAHAL TRADE & INVESTMENTS PVT. LTD. SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
2.SRI TONSE SUDHAKAR PAI S/O T. RAMESH PAI AGED 59 YEARS R/A NO.5, CHITRAKALA, ANANTHNAGAR MANIPAL, UDUPI, KARNATAKA-576104
3.SRI T. MURALIDHAR RAO S/O T. NARAYANA RAO AGED 82 YEARS R/A NO.11, MEGHA MALHAR, VIDYARATNANGAR, MANIPAL, UDUPI, KARNATAKA-576104
4.SRI SUBBARAME GOWDA S/O DASE GOWDA AGED 73 YEARS R/A 2710/2, II MAIN, VANIVILAS MOHALLA, MYSORE, KARNATAKA-570002
5.SRI KATPADY MADHAVA KINI S/O KATPADI RAGHAVENDRA KINI
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AGED 51 YEARS R/A VAISHNAVI, KATAPADI UDUPI, KARNATAKA-574105
6.SMT. JAYA S. PAI W/O T. SUDHAKAR PAI AGED 55 YEARS R/A CHITRAKALA, ANANTHNAGAR, MANIPAL, KARNATAKA-576104
7.SRI KAPPPETTU PRAKASH SHETTY S/O K. NARAYANA SHETTY AGED 61 YEARS R/A RAMANI, SARALABETTU, MANIPAL, KARNATAKA-576104
8.SRI SEVAGOOR SRINIVAS KAMATH S/O SEVAGOOR VASUDEV KAMATH AGED 51 YEARS R/A 159/24, III MAIN, VYALIKAVAL, BANGALORE KARNATAKA-560003
9.SRI SHASHINDRA BHAT S/O RAMAKRISHANA S BHAT AGED 47 YEARS R/A H.NO.5-96, BADAGABETTA, UDUPI, KARNATAKA-576119
10.SRI GARNET ALBERT REGO S/O GRATIAN CHARLES REGO AGED ABOUT 77 YEARS R/A 19 B, KRISHNAPUR COLONY, MANIPAL, UDUPI, KARNATAKA-576104 ... RESPONDENTS
(BY SRI.K.G.RAGHAVAN, SR.ADV. FOR SRI.ANUP S.SHAH LAW FIRM FOR R1, R2, R4 TO R10)
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IN COMPANY APPEAL NO. 7/2012
BETWEEN:
1.CHITRAKALA INVESTMENT TRADE & BUSINESS FINANCE LIMITED "SYNDICATE HOUSE", UPENDRA NAGAR, MANIPAL- 576 104
2.RAJMAHAL TRADE & INVESTMENTS PRIVATE LIMITED SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL- 576 104
3.ANIL SUNIL TRADE & INVESTMENTS PRIVATE LIMITED NO. 701, NORTH BLOCK MANIPAL CENTRE 47, DICKENSON ROAD BANGALORE- 560 042 ...APPELLANTS (BY SRI.ASHOK HARANAHALLI, SR.ADV. FOR SRI. P.N.MANMOHAN, ADV.)
AND:
1.SEA ROCK INVESTMENTS LIMITED SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL- 576 104
2.SRI TONSE SUDHAKAR PAI AGED ABOUT 59 YEARS S/O T RAMESH PAI R/AT NO. 5, CHITRAKALA, ANATHNAGAR, MANIPAL ,UDUPI KARNATAKA- 576 104
3.SRI R MURALIDHAR RAO AGED ABOUT 82 YEARS S/O T NARAYANA RAO R/A 11, MEGHA MALHA, VIDYARATNANAGAR, MANIPAL,KARNATAKA- 576 104
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4.SRI GARNET ALBERT REGO AGED ABOUT 77 YEARS S/O GRATIAN CHARLES REGO R/A 19 B, KRISHNAPUR COLONY, MANIPAL KARNATAKA- 576 104
5.SRI SHASHINDRA BHAT AGED ABOUT 47 YEARS S/O RAMAKRISHNA S BHAT R/A H.NO. 5-96, BADAGABETTA, UDUPI, KARNATAKA- 576 119
6.SMT JAYA S PAI AGED ABOUT 55 YEARS W/O T SUDHAKAR PAI CHITRAKALA, ANANTHANAGAR, MANIPAL KARNATAKA- 576 104
7.SRI KAPPETTU PRAKASH SHETTY AGED ABOUT 61 YEARS S/O K NARAYANA SHETTY RAMANI, SARALABETTU MANIPAL KARNATAKA- 576 104
8.SRI P P MURALIDHARAN AGED ABOUT 53 YEARS S/O KARUNAKARAN KIZHITIL R/A LAKHAN CO-OP HSG SOCIETY FLAT NO. 204, B WING, 2ND FLOOR, RAMAKRISHNA NAGAR, CHINCH PADA ROAD, KALYAN ( EAST) KALYAN, MAHARASTRA-
9.SRI TARANATH C KOTIAN AGED ABOUT 58 YEARS S/O C R KOTIAN 305, SHANTI APTS. BLDG NO. 28, MILTARY RD. ANDHERI, N R RAJ OIL MILL,
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MUMBAI, MAHARASHTRA-400 059
10.MANIPAL HOLDINGS PRIVATE LIMITED SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL KARNATAKA- 576 104
11.SRI RAMACHANDRA NAYAK AGED ABOUT 77 YEARS S/O FATHERS NAME NOT KNOWN TO THE APPELLANTS, R/A NEAR CANARA MILK, ESHWAR NAGAR, MANIPAL, KARNATAKA- 576104 ... RESPONDENTS
(BY SRI.K.G.RAGHAVAN, SR.ADV. FOR SRI.ANUP S.SHAH LAW FIRM FOR R1, R2, R4 TO R11)
IN COMPANY APPEAL NO. 8/2012
BETWEEN:
1.RAJMAHAL TRADE & INVESTMENTS PRIVATE LIMITED SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL- 576 104
2.ANIL SUNIL TRADE & INVESTMENTS PRIVATE LIMITED NO. 701, NORTH BLOCK MANIPAL CENTRE 47, DICKENSON ROAD BANGALORE- 560 042 ...APPELLANTS (BY SRI.ASHOK HARANAHALLI, SR.ADV. FOR SRI. P.N.MANMOHAN, ADV.)
AND:
1.JAI BHARATH MILLS PRIVATE LTD SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL- 576 104
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2.SRI TONSE SUDHAKAR PAI AGED ABOUT 59 YEARS S/O T RAMESH PAI R/AT NO. 5, CHITRAKALA, ANATHNAGAR, MANIPAL ,UDUPI KARNATAKA- 576 104
3.SRI R MURALIDHAR RAO AGED ABOUT 82 YEARS S/O T NARAYANA RAO R/A 11, MEGHA MALHA, VIDYARATNANAGAR, MANIPAL,KARNATAKA- 576 104
4.SRI GARNET ALBERT REGO AGED ABOUT 77 YEARS S/O GRATIAN CHARLES REGO R/A 19 B, KRISHNAPUR COLONY, MANIPAL KARNATAKA- 576 104
5.SRI KATPADY MADHAVA KINI AGED ABOUT 51 YEARS S/O KATPADI RAGHAVENDRA KINI R/AT VAISHNAVI, KATAPADI, UDUPI, KARNATAKA- 574105
6.SMT JAYA S PAI AGED ABOUT 55 YEARS W/O T SUDHAKAR PAI R/AT CHITRAKALA, ANANTHANAGAR, MANIPAL KARNATAKA- 576 104
7.SRI KAPPETTU PRAKASH SHETTY AGED ABOUT 61 YEARS S/O K NARAYANA SHETTY R/O RAMANI, SARALABETTU MANIPAL KARNATAKA- 576 104
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8.SRI JAGADISH KUDVA AGED ABOUT 50 YEARS S/O ANNAPPA KUDVA R/AT BELMAN, KARKALA, KARNATAKA- 574 105
9.SRI SHASHINDARA BHAT AGED ABOUT 47 YEARS S/O RAMAKRISHNA S BHAT R/A H.NO. 5-96, BADAGABETTA, UDUPI, KARNATAKA- 576 119
10.SRI U MUDDANNA AGED ABOUT 46 YEARS S/O CHANDU POOJARI R/A NIDAMBALLI, KELANEJARU, KALYANPURA, UDUPI, KARNATAKA- 576 105
11.SRI RAMACHANDRA NAYAK AGED ABOUT 77 YEARS S/O FATHERS NAME NOT KNOWN TO THE APPELLANTS, R/AT NEAR CANARA MILK, ESHWAR NAGAR, MANIPAL, KARNATAKA- 576 104 ... RESPONDENTS (BY SRI.K.G.RAGHAVAN, SR.ADV. FOR SRI.ANUP S.SHAH LAW FIRM FOR R1, R2, R4 TO R11)
IN COMPANY APPEAL NO. 9/2012
BETWEEN:
1.CHITRAKALA INVESTMENT TRADE & BUSINESS FINANCE LTD., SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
2.RAJMAHAL TRADE & INVESTMENTS PVT. LTD SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
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3.ANIL SUNIL TRADE & INVESTMENTS PVT. LTD. NO.701, NORTH BLOCK MANIPAL CENTRE 47, DICKENSON ROAD, BANGALORE -42 ... APPELLANTS
(BY SRI.ASHOK HARANAHALLI, SR.ADV. FOR SRI. P.N.MANMOHAN, ADV.)
AND:
1.MANIPAL BUILDERS & DEVELOPERS PVT. LTD. SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
2.SRI.TONSE SUDHAKAR PAI S/O T. RAMESH PAI AGED ABOUT 59 YEARS R/AT NO.5, CHITRAKALA, ANATHNAGAR, MANIPAL, UDUPI, KARNATAKA-576104
3.SRI. R. MURALIDHAR RAO S/O T. NARAYANA RAO AGED ABOUT 82 YEARS R/A 11, MEGHA MALHAR, VIDYARATNANAGAR, MANIPAL , KARNATAKA-576104
4.SRI. SHASHINDRA BHAT S/O RAMAKRISHNA S. BHAT AGED ABOUT 47 YEARS R/AT H.NO.5-96, BADAGABETTU, UDUPI, KARNATAKA -576119
5.SMT. JAYA S. PAI W/O T. SUDHAKAR PAI AGED ABOUT 55 YEARS R/AT CHITRAKALA ANANTHANAGAR MANIPAL, KARNATAKA -576104
6.SRI. KAPPETTU PRAKASH SHETTY S/O K. NARAYANA SHETTY AGED ABOUT 61 YEARS
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R/AT RAMANI, SARALABETTU, MANIPAL, -576104
7.SRI. KATPADY MADHAVA KINI S/O KATPADI RAGHAVENDRA KINI AGED ABOUT 51 YEARS R/A VAISHNAVI, KATAPADI, UDUPI, KARNATAKA-574105
8.SRI. JAGADISH KUDVA S/O ANNAPPA KUDVA AGED ABOUT 50 YEARS R/AT BELMAN, KARKALA KARNATAKA-574105 ... RESPONDENTS
(BY SRI.K.G.RAGHAVAN, SR.ADV. FOR SRI.ANUP S.SHAH LAW FIRM FOR R1, R2, R4 TO R8)
IN COMPANY APPEAL NO. 10/2012
BETWEEN:
1.SEA ROCK INVESTMENTS LTD. SYNDICATE HOUSE, UPENDRA NAGAR, MANIPAL-576104
2.CHITRAKALA INVESTMENT TRADE & BUSINESS FINANCE LTD. SYNDICATE HOUSE, UPENDRA NAGAR MANIPAL-576104
3.RAJMAHAL TRADE & INVESTMENTS PVT. LTD. SYNDICATE HOUSE, UPENDRA NAGAR MANIPAL-576104 ... APPELLANTS
(BY SRI.ASHOK HARANAHALLI, SR.ADV. FOR SRI. P.N.MANMOHAN, ADV.)
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AND:
1.JAYAMAHAL TRADE & INVESTMENTS PVT. LTD. 701, NORTH BLOCK, MANIPAL CENTRE DICKENSON ROAD, BANGALORE, KARNATAKA -560042
2.SRI. TONSE SUDHAKAR PAI S/O T. RAMESH PAI AGED 59 YEARS R/AT NO.5, CHITRAKALA, ANANTHNAGAR MANIPAL, UDUPI, KARNATAKA-576104
3.SRI. R. MURALIDHAR RAO S/O T. NARAYANA RAO AGED 82 YEARS R/AT NO.11, MEGHA MALHAR, VIDYARATNANAGAR MANIPAL,KARNATAKA-576104
4.SRI. SUBBARAME GOWDA S/O DASE GOWDA AGED 73 YEARS R/AT 2710/2, II MAIN ROAD, VANIVILAS MOHALLA MYSORE, KARNATAKA-570002
5.SRI. KATPADY MADHAVA KINI S/O KATAPADI RAGHAVENDRA KINI, AGED 51 YEARS R/A VAISHNAVI, KATAPADI UDUPI, KARNATAKA-574105
6.SMT. JAYA S. PAI W/O T. SUDHAKAR PAI AGED 55 YEARS R/A CHITRAKALA, ANANTHANAGAR MANIPAL, KARNATAKA-576104
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7.SRI. KAPPETTU PRAKASH SHETTY S/O K. NARAYANA SHETTY AGED 61 YEARS R/AT RAMANI, SARALABETTU, MANIPAL, KARNATAKA-576104
8.SRI. SEVAGOOR SRINIVAS KAMATH S/O SEVAGOOR VASUDEV KAMATH AGED 57 YEARS R/A 159/24, III MAIN, VYALIKAVAL, BANGALORE KARNATAKA-560003
9.SRI. SHASHINDRA BHAT S/O RAMAKRISHNA S. BHAT AGED 47 YEARS R/A H.NO.5-96, BADAGABETTA UDUPI, KARNATAKA-576119
10.SRI. GARNET ALBERT REGO S/O GRATIAN CHARLES REGO AGED 77 YEARS R/A 19 B, KRISHNAPUR COLONY MANIPAL, UDUPI, KARNATAKA -576104 ... RESPONDENTS
(BY SRI.K.G.RAGHAVAN, SR.ADV. FOR SRI.ANUP S.SHAH LAW FIRM FOR R1, R2, R4 TO R8)
These COMP.As. are filed under Section 10(F) of the Companies Act, 1956, praying to allow these appeals and set aside the order dated 26.03.2012 passed in C.P.Nos.75/2009, 76/2009, 77/2009, 78/2009, 79/2009 & 80/2009 passed by the Company Law Board, Additional Principal Bench at Chennai, and consequently allow C.P.Nos.75/2009, 76/20009,
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77/2009, 78/2009, 79/2009 & 80/2009, in the interest of justice and equity.
These COMP.As. coming on for Admission this day, DILIP B.BHOSALE J, delivered the following:-
PC:
Learned counsel appearing for the appellants, in all these appeals, has filed a memo dated 27.09.2013 seeking withdrawal of the appeals, with liberty to
Mr.Ramachandra Rao and Mr.P.N.Balakrishna Rao to institute a civil suit for appropriate relief. He further submits, that if they file suit, the Civil Court be directed to decide the suit on merits, in accordance with law and uninfluenced by the observations made in the order dated 26.03.2012 passed by the Company Law Board on issue Nos. 3 and 4.
2. The appeals are dismissed as withdrawn, with liberty as prayed. If Mr. Ramachandra Rao and/or
Mr.P.N.Balakrishna Rao file any civil suit, the Civil
Court shall consider and deal with the same on merits, in accordance with law. It is needless to state that the
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Civil Court shall decide the suit uninfluenced by the observations made in the order dated 26.03.2012 in
Co.P.Nos.75/09, 76/09, 77/09, 78/09, 79/09 and
80/09 on the issues, whether induction of new
Directors is liable to be declared illegal and whether removal of Y.N.Ramachandra Rao in the EGM is liable to be adjudicated.
All contentions of the parties on the questions of law and on facts are kept open.
Sd/- JUDGE
Sd/- JUDGE Srl.