2010 (5) TMI 696 - Board - Companies Law

Asset Restraint Order Upheld, Requiring Petitioners to File Rejoinder

Blancatex Ag Versus AI Champdany Constructions Ltd. (No. 1)

The application for modifying the order restraining alienation of fixed assets was dismissed by the court. The respondent sought modification to lease out ... Oppression and mismanagement Issues involved: Application for modifying the order restraining alienation of fixed assets of a company.Summary:The respondent filed applications seeking modification of an order restraining alienation of fixed assets. The respondent, a wholly owned subsidiary, received offers for leasing out the assets, claiming potential loss if not leased. The petitioners argued lack of probity in asset transfer and potential impact on their shareholding. Respondent received offers after the restraint order, prompting petitioners to allege circumvention. Both parties presented arguments citing legal precedents to support their positions.The respondent argued for modification based on lack of applicability of certain provisions and equity grounds. The petitioners countered, emphasizing the need to protect their interests and prevent multiplication of litigation. The Bench noted the interim nature of the previous order and considered the interestedness of the parties in the asset transfer. It concluded that maintaining the restraint order was justified to prevent potential irreparable loss and injury to all parties involved.The application for modification was dismissed, with the petitioners directed to file a rejoinder and present arguments within a specified timeframe. Failure to comply would result in the cancellation of the previous order. The decision aimed to balance the interests of the parties while ensuring a fair and just resolution in the ongoing legal proceedings.