LIFE INSURANCE CORPORATION OF INDIA, ETC. versus ESCORTS LTD. & OTHERS, ETC .

Citation: [1984] 3 S.C.R. 643 · Decided: 30-04-1984 · Supreme Court of India · Bench: S. MURTAZA FAZAL ALI · Disposal: Disposed off

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

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LIFE INSURANCE CORPORATION OF INDIA, ETC. 
v. 
ESCORTS LTD. & OTHERS, ETC .. 
April 30, [984 
(S. '.°MURTAZA 
FAZAL A.LI, AMARENDRA NATH SEN AND v. 
BALAKRiSlfNA BRAD!, JJ;) 
\. ·Companies Act 1956 ss. 166 and 284 Annual general meeting ho/ding of · 
notice:' seeking remov"al of direttOrs of company-:-High Court granting s.tay 
in/u!J~ti?!l i~ ·writ petitioii-interference ·bf· Supreme Court.. 
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The appellants in their appeals to this Cour.t challenged the order of 
a Single Judge of the High Courl; admitting the writ petition of tho firsl 
·respondent cOmpany_ and staying ·of the notice seeking removal of certain· 
Directors. of th·e company. 
HELD: ! .. There will be an order vacating the order of ·stay/injunc• 
tion P,aSsed by the Single Judge of the. High Court, prohibiting any action 
·being ·taken on the basis of the requisition put in by L.I.C. 
[644E) 
2:; AIL app_ropriate -prQceedings· will be.· ta.ken ~n accordance with law· ·. 
on the basis of th_e requisition. However", no effect._ should be _-givfn to any 
resoJutiotl the con1pany may pass at_ the extra~ordinafy- general m·eeting to 
Qe held in conseqtience of the requ'isition without obtaining priOr . dirCctions -
from thii Court. • [644F•G] . · 
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3-. ·T6e pendency Of q1ese cases in thiS Court Will nofstand in the 
w'ay of'.bolding the-annual general i;neeting of th"e · cojilpanY in t_he normai 
course. {644G) 
·- ··'CIVIL APPELLATE JURISDICTION.: Civil Appeal No. 2317 of 
1984 .. 
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,From: the Judgment and O,rder dated 14/15.3.1984 of the High 
Gourt Of Bombay in w.P. No. 3063/1983 . 
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Civil Appeal No. 2318 ·of 1984. 
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From. the Judgment a)id. order dated 14/15.3.1983 of the 
jlombay High Cou.rt iµ W,P. )"9. 3063/1983, 
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SUPREME COURT REPORTS 
(1984] 3 s.c.R. 
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Transfer Petition· (Civil) No·. 190 of 1984. 
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For the P;:titioner/Appellant .: 
K. Parasan, Attorney General, Milan K. BanerJee, Addi. 
Solicitor General, s.A. Shroff, .Mfss A Subhashifli and Dr. V. Gori 
Shanker, 
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For the Respondents : 
N .. A. Palkhlvala, Soli J. SorabJee, 
P. R. Mridul, A. B. 
Divan, Dr." L.M. Singh-Vi, KK. Venugopal, J.B. Dadachanji, iiajinder · 
Narain, Harish Salve, B.S. Bantia,. X.S. Cooper, liedabratta Barua, 
R .. Nariman, T.M. Ansari, P.X. Rµm, Mrs. A.K. Verma and D.N. 
Mishra; 
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The Order of the Court was delivered by 
FAZAL ALI, J~ . 
.In SU' (C) Nos. 5392/84 & 5412~4. 
We have heard learned Attorney General ..for the petitioriors 
and Mr. Palkhivala, learned counsel for respqndents at length. 
Special leave granted. There will be. an order vacating the 
. order of stay/injunction passed by the Single Ju.\lge of the High 
Co11rt, .prohibiting any action being taken on . the basis of the 
requisitio.n put in by L.I.C. We direct that all appropriate procee-
dings will be taken in accordance ·with Jaw· on the basis of tho 
requisition. .However, no effect should be given to.any resol.ution 
t:be company may pass at the extra:orginary general meeting to -be 
held in consequence of the requisition without obtaining prior direc-
tions from this Court. The pendency of these cases in this Court will 
no\. stand in the way of holding the ann~l general meeting of the . 
company in the norinal course. These appeals are disposed of except 
that they will be kept pending for the limited purpoil'e to enable 
counsel to move this Court for directions as indicated above·. In 
computing the time for taking steps· pursuant to the requisititon, the 
periOd from the.date of requisition· till this day wHI be excluded in 
view of interim stay/injunction granted by the High Court. 
Th.e prayer for amendment of the cause title is allowed, . 
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i. I. c.. v. ESC,ORTS <Fazal Ali, J) 
Transfer Petition (C) No t90 of 1984. 
Mr. Palkhivala, learned counsel on behalf of the respondents 
stltes that matter is being liste.d before' the High Court. for final 
hearing on 11th June, 1984 and he assures this Court that his clients 
will . fully co·qperate so that the case can he heard and fin.ally 
disposed of in the High Court by the end ofJune, 1984. We request 
the High. Court to.di~pose of the matter finally as expeditiously as 
· possible. In view of this, the learned Attorney General does not 
pNss the Transfer Petition fo~ the present which is accordingly 
dismissed. 
N.V.K. 
Writ· Petition allowed·. 
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Transfer Petition dismiss

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