https://www.taxtmi.com/caselaws?id=113801 In oppression and mismanagement proceedings, equitable relief under sections 397 and 398 of the Companies Act, 1956 cannot be used to validate or reward an illegal share allotment. The High Court noted that the respondents' allotment of 2,600 shares had already been held invalid and had attained finality, so directing the appellants to sell their shares to the respondents after valuation would confer an unfair advantage on the wrongful allotment. The direction was therefore set aside, and the matter was remitted for fresh orders on a neutral basis, with both sides to be given an opportunity to purchase shares on the approved valuation. en-us Fri, 19 Feb 2010 00:00:00 +0530 Wed, 15 Oct 2014 13:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113801 In oppression and mismanagement proceedings, equitable relief under sections 397 and 398 of the Companies Act, 1956 cannot be used to validate or reward an illegal share allotment. The High Court noted that the respondents' allotment of 2,600 shares had already been held invalid and had attained finality, so directing the appellants to sell their shares to the respondents after valuation would confer an unfair advantage on the wrongful allotment. The direction was therefore set aside, and the matter was remitted for fresh orders on a neutral basis, with both sides to be given an opportunity to purchase shares on the approved valuation. Case-Laws Companies Law Fri, 19 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113801