2009 (7) TMI 787

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.... short question is involved, appeal is admitted and finally disposed of forthwith. 2. This appeal takes exception to the judgment and order passed by the Company Law Board dated 22-5-2009, on Application No. 95 of 2009. The said application was filed in Company Petition No. 45 of 2009 which in turn is filed under sections 397 and 398 of the Companies Act, 1956, by 106 individual shareholders of Shree Ram Urban Infrastructure Ltd., the appellant herein. By the impugned decision the Board has in the first place restrained the appellant-company and its board of directors in implementing the decision taken in the board of directors' meeting held on 18-5-2009, in relation to the issue of convertible warrants of 25 million equity shares of Rs.....

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....out in the petition as filed. For the time being, suffice it to observe that the Board has not examined this aspect at all. Moreover, as aforesaid, no reason has been recorded by the Board, which necessitated issuance of injunction as is ordered against the appellants and its board of directors. It would be a different matter if the Board were to consider all relevant aspects for grant or non-grant of interim relief such as prima facie case, balance of convenience and irreparable loss and record its opinion one way or the other on the contentious issues. In the circumstances, the only option available to this Court is to set aside the impugned order and to relegate the parties for reconsideration of the application on its own merits in acco....