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2007 DAILYLAW 2529 (DEL)

M. L. ARORA v. GREEN VALLEY FROZEN FOODS LTD

2007-10-03

Rekha Sharma

body2007
REKHA SHARMA, J. ( 1 ) A petition filed by Shri M. L. Arora is pending before the Company law Board with regard to the shareholding of the petitioner on which the following order was passed on December 21, 2006: petition Mentioned ex parte consideration the facts and circumstances of the case. I direct the Company to maintain status quo, as of date, of the fixed assets of and shareholding in the Company. Respondents to file their replies to the Petition by 20. 1. 07 and rejoinder to be filed by 20. 2. 07. The petition will be heard on 26. 2. 07 at 2. 30 P. M. Petitioner to serve a copy of this order on the Respondents. ( 2 ) ON the said date, the aforesaid order was modified to the extent that the respondent Company was directed to maintain status-quo with regard to the shareholding of the petitioner. In other words, the order directing the company to maintain status-quo with regard to its fixed assets was done away with. ( 3 ) AGGRIEVED by the order passed on June 6, 2007, Shri M. L. Arora has preferred the present appeal. It is submitted by learned counsel for the appellant that taking advantage of the order passed on June 6, 2007, the company is disposing of its assets and if it is allowed to do so, it may cause prejudice to the appellant who has 25% share in the company. ( 4 ) THE learned counsel appearing for the respondent has disputed the averment that the company is disposing of its assets. It is submitted that the company is merely selling one of its lands at Himachal Pradesh and in lieu thereof is purchasing land at Rudrapur, Uttrakhand. In this view of the matter, the company was directed to file an affidavit stating these facts. An affidavit dated October 1, 2007 has been filed. After some arguments on the affidavit, it is conceded by learned counsel for the respondent that for the present, the company has not entered into any 'agreement to Sell' in respect of land at Himachal Pradesh and that for the time being, it is only in the process of completing formalities for selling the land. After some arguments on the affidavit, it is conceded by learned counsel for the respondent that for the present, the company has not entered into any 'agreement to Sell' in respect of land at Himachal Pradesh and that for the time being, it is only in the process of completing formalities for selling the land. ( 5 ) HAVING regard to these facts, I feel that there is no urgency to permit the company to dispose of its fixed assets even though it intends to purchase other assets in lieu thereof. I am informed that the Company Law Board has already heard the matter and has reserved the case for orders. The Company law Board is directed to dispose of the matter as expeditiously as possible preferably within a month from today. In case, the matter is not disposed of within a month and in the meanwhile, the company is able to find a buyer for the property at Himachal Pradesh, it will be at liberty to approach this Court. Any such application, if filed, will be considered on its own merits. With these directions, the appeal is dismissed.