Trace Your Case

ISSUE:

Whether the appeal was maintainable?

Whether a petition under Section 397 can be filed on account of a single act of oppression?

Whether oppression must be of minority shareholders by majority shareholders?

RULE:

An irregular or illegal action is not per se oppressive but the illegality of action may have a bearing upon its oppressiveness.

A resolution passed by the directors may be perfectly legal and yet oppressive, and conversely, a resolution that is in contravention of the law may be in the interests of the shareholders and the company.

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