SUPREME COURT Ram Bahadur Thakur Ltd. Chatur Bhuj Sharma Madan Mohan Sharma

From http://www.manupatrainternational.in/supremecourt/2001%20onwards/sc2006/S060185.htm

MANU/SC/1470/2006
IN THE SUPREME COURT OF INDIA
Civil Appeal Nos. 9445 and 9446 of 2003
Decided On: 21.03.2006
Appellants: Manish Mohan Sharma and Ors.
Vs.
Respondent: Ram Bahadur Thakur Ltd. and Ors.

JUDGMENT

Ruma Pal, J.

Page 1473

1. Ram Bahadur Thakur Ltd., the respondent No. 1 was founded by Chatur Bhuj Sharma and Madan Mohan Sharma. They were first cousins, their fathers being brothers. The shareholding of the two cousins in the respondent No. 1 was equal. Since 1992, disputes arose between the two groups, who are referred to respectively as the CBS Group and the MMS Group. The MMS Group is in appeal before us and the CBS Group is represented by the respondents No. 2 to 4. The disputes related primarily to the management of the various companies owned by the family including and in particular the Respondent No. 1.

2. In 1996 the MMS Group filed a company petition ( No. 56 of 1996) before the Company Law Board, New Delhi under the provisions of Sections 397 Page 1474 and 398 of the Companies Act, 1956, complaining inter alia of having been ousted from management of the companies and seeking a role in such management. Various interim orders were passed. On 9th January, 1997, the Company Law Board removed the respondent No. 2 as Chairman and Managing Director of the Company and appointed a retired Judge, Justice A.N. Varma as the Chairman of the Company. In 1998, pursuant to another interim order passed by the Company Law Board, the MMS Group was put in joint management of the Company.