Union of India, Ministry of Company Affairs v. Padmini Technologies Ltd.

Oppression & Mismanagement


Section 397 of the Companies Act, 1956 - Oppression and mismanagement - Government filed petition under section 397, read with section 408, alleging oppression and mismanagement in affairs of respondent-company and seeking appointment of directors by Government on board of company - Facts revealed that company incurred heavy loss by purchasing shares of a

company at exorbitant rate which amounted to misuse of funds; that it had violated provisions of various sections of Act; that SEBI had conducted enquiries into affairs of company; and that creditors were also fighting case against company before Debt Recovery Tribunal - Further company entered into business with those companies which subsequently became vanishing companies and company had not made any efforts for recovery of money

from those companies which resulted in loss to respondent-company - Majority of shareholding of respondent-company was held by members of public and stake of managing director and other members was far less - Whether on facts to safeguard interest of shareholders, public and company, Central Government was to be directed to appoint its directors on board of

respondent-company - Held, yes

LOADING PDF: If there are any problems, click here to download the file.

Reference Info:n/a | India

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Vinay Talwar, Corporate Consultants | Attorney Advertising

Written by:


Corporate Consultants on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.