Where circumstances suggested that business of company was being conducted with intend to defraud petitioner and its members, investigation into affairs of respondent No. 1 was to be ordered

CL: Where circumstances suggested that business of company was being conducted with intend to defraud petitioner and its members, investigation into affairs of respondent No. 1 was to be ordered
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[2014] 49 taxmann.com 339 (CLB - Mumbai)
COMPANY LAW BOARD, MUMBAI BENCH
Red Apple General Trading FZE
v.
Jinbhuvish Power Generations (P.) Ltd.
ASHOK KUMAR TRIPATHI, JUDICIAL MEMBER
CP NO. 82 OF 2012
JUNE  7, 2013
Section 213 of the Companies Act, 2013/ Section 237 of the Companies Act, 1956 - Investigation of Company's affairs in other cases - Whether in a petition under section 237 (b), criminal proceeding pending against either of parties is not relevant and CLB has to take decisions in facts and circumstances of given case - Held, yes - Whether, thus only company and its board of directions are necessary parties - Held, yes Whether, since respondents had failed to justify transfer of shares amongst different members and all circumstances clearly suggested that business of R1 company was being conducted with intend to defraud petitioner and its members , it was a fit case in which an order should be made for investigation into affairs of R1 Company - Held, yes [Paras 27,29, 42 & 43]