Of Mismanagement In Lalita Rajya Lakshmi V. Indian Motor Co.
Minor acts of mismanagement, however, are not be regarded as oppression. As far as possible, shareholders should try to resolve their differences by mutual re-adjustment. Moreover, the Courts will not allow these special remedies to become a vexatious source of litigation. In Lalita Rajya Lakshmi v. Indian Motor Co. The petitioner alleged that the board of directors were guilty of certain acts detrimental to the minority shareholders. The allegations were that the income of the company was deliberately shown less by excessive expenditure; that passengers travelling without the company 's buses were not checked; that petrol consumption was not properly checked; that second-hand buses of the company were disposed of at low, cost dividends were being declared at too low a figure. It was held that even if each of these allegations were proved to the satisfaction of the Court, there would have been no oppression. A Applicability of principle of dissolution of partnership- In Trackparts of India Ltd. v. K.N. Bhargava [2001]33 SCL 40, the Allahabad High Court held that when both parties (belonging to one family) were found to be guilty of acts of oppression against each other and were conducting themselves, with regard to affairs of the company in an irreconciliable manner, the CLB is empowered to pass appropriate order in the interests of the company and of the shareholders even though the plea of oppression and mismanagement fails. In the instant case the CLB passed order for
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