the companyrt by its judgment dated 27 1 1965 made the following order the result is that we must strike down and we hereby declare the impugned order of revocation of exemption dated march 24 1962 as invalid and of numbereffect.
by the deed dated 22nd august 1947 the said companypany entered into an agreement of managing agency for a period of twenty years with nav samaj pravartan a partnership firm wherein the aforementioned shri p. y deshpande and shri w. g. sheorey were the partners.
a mandamus prohibiting the respondents from giving effect to the order of the central government dated 24 3 1962 and 2 to prohibit the respondents from taking any steps companypelling the petitioner company to modify the voting rights of the deferred or founders shareholders and vested in the trustees.
the bombay high companyrt did number go into the validity of that order.
the central government by its letter darted 30th march 1957 granted the exemption prayed for for a period of 3 months with effect from 1st april 1957.
the high companyrt merely struck down the order of the government dated 24 3 1962 and issued a mandamus to the respondents restraining them from enforcing the said order.
the said revocation order of the central government was challenged by the fourth respondent in special civil application number 244 of 1962 in the high companyrt of judicature at bombay nagpur bench .
the petitioners case is that the managing agents did number disclose to the shareholders at any time either that they had applied to the central government for an exemption under section 89 4 of the act or that any exemption under that provision had been obtained the central government granted the exemption asked for by the managing agents without giving any opportunity to the shareholders to show cause against the same the petitioners came to knumbers about the exemption in question in the month of january 1960 thereafter on 13th february 1960 the fifth petitioner represented to the central government the injustice caused to the shareholders by granting the exemption on the basis of that representation and after hearing the managing agents the central government revoked the exemption granted by its order dated 24th march 1962.
the petitioners are shareholders of nav samaj limited a companypany registered under the indian companypanies act 1913.
the words said shares refer to the founders shares.
herein the petitioners pray that this companyrt may be pleased to declare that the order made by the government on july 29 1957 under sub section 4 of section 89 of the companypanies act 1956 to be hereinafter referred to as the act is null and void or in the alternative quash the same for the reasons mentioned in the petition.
the petitioners moved this companyrt under article 226 challenging the validity of the impugned order.
after they came to knumber about that order one of the shareholders moved the central government to revoke the same as a result of which the impugned order was revoked by the central government by its order dated 24 3 1962.
as seen earlier the petitioners in special civil application number 244 of 1962 had prayed for two reliefs viz.
thereafter the fourth respondent filed special civil appln number 244 of 1962 which application was disposed of by the high companyrt on 27 1 1965 .
25 each and b 25000 deferred shares of rs.
in other words the bombay high companyrt only companysidered the validity of the order of the central government dated 24 3 1962.
that petition had to be withdrawn.
deshpande and sheorey purporting to act on behalf of the managing agency firm as well as on behalf of the fourth respondent requested the central government to exempt the fourth respondent from the requirements of sub sections 1 2 and 3 of section 89 of the act.
the act came into force on 1st april 1956.
petitioners 2 to 5 hold five shares each therein.
out of the authorised capital the total subscribed and paid up capital of the companypany is made up by the value of a 31527 ordinary shares of rs.25 each and b 25000 deferred share at rs.
2 each.
later by its letter dated 20th july 1957 it wrote as follows to the managing agents whereas the central government is of opinion that the exemption prayed for is required in the public interest number therefore in exercise of the powers companyferred on it by sub section 4 of section 89 of the said act the central government hereby exempts the companypany from the requirements of sub sections 1 2 and 3 of the said section in respect of the said shares.
the second petitioner also claims to be a transferee of 4400 ordinary shares from one maharaja shri ramanuj saran singh.
2 per share.
the said companypany was incorporated on or about 5th may 1947.
very soon after the disposal of that petition.
it has an authorised capital of rupees the lakhs divided into a 38000 ordinary shares of rs.
but the said transfer has number yet been recognised by the aforementioned companypany.
in that petition the fourth respondent herein prayed for the following two reliefs 1 that the companyrt may be pleased to issue a writ of mandamus respondent the respondent therein from giving effect to the order of the central government dated 24 3 1962 revoking the order made by it under section 89 4 of the act on 29 7 1957 and 2 it may be pleased to prohibit the respondent from taking any steps companypelling the petitioner company to modify the voting rights of the deferred or founders shares and vested in the trustees.
thereafter the present writ petition was filed.
petitioner number1 holds 400 ordinary shares of the said companypany.
respondent number4 .
the value of the ordinary shares subscribed is rs.
this is an application under article 226 of the companystitution.
by an application dated 26th march 1956 messrs.
sections 87 to 90 of the act deal with the voting rights of the shareholders of the companypanies limited by shares.
