Court denies injunction, directs company to invite tenders post-resolution for property disposal. Directors to finalize based on best offer.

The court rejected the application for injunction seeking to restrain the company from discussing the agenda item related to property disposal at the Annual General Meeting. Instead, the court directed the company to invite tenders for the property after the resolution, allowing the applicants to participate in the process. The court emphasized that the directors would finalize the dealings based on the best offer received by the company, ensuring transparency in the property development process.

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Issues involved: Application for injunction u/s Order-39 Rules-1 & 2 of CPC R/w Rules-6 & 9 of the Companies (Court) Rules,1959 to restrain company from agenda item discussion at Annual General Meeting regarding property disposal.

Summary:
The applicants sought an ad-interim injunction to prevent the company from discussing agenda item No.6 at the upcoming Annual General Meeting, which pertained to the disposal of company property. They argued that the proposed discussion was against the company's objectives and could lead to the property being disposed of in a clandestine manner. On the other hand, the respondent company, through its senior counsel, contended that the property in question, an old theater in Mangalore, could be developed for the benefit of shareholders as per the company's memorandum of association. The respondents assured transparency in dealing with the property, including inviting tenders for development. The court noted the contentions of both parties and rejected the application for injunction. Instead, it directed the respondents to invite tenders after the resolution and allowed the applicants to participate, emphasizing that the directors would finalize the dealings based on the best offer received by the company.

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