Oppression and Mismanagement remedy u/s 241 with Draft Petition format
New Act has retained the remedy of oppression and mismanagement .Section 397,398 and 401 of the companies act,1956 are merged and bought into companies act,2013 with few changes to make it more effective.
This is article of the series of editorials written by the ADV ACS Jeetam Kumar Saini on Corporate Laws(He also Written many articles Including Companies Act, 2013, SEBI, RBI Regulations, IBC)advocatejeetamsaini@gmail.com - 9785949998
Section 241 read with section 242
Analysis of this section with some question
- Has the meaning of oppression changed?
- How do the significant changes in other provisions of the companies act, 2013 affect the scope of mismanagement ?
Oppression
An act of cruelty, severity ,domination or excessive use of authority
An act or omission may also amount to oppressive conduct if it is designed to achieve an unfair advantage.
Oppression means burdensome, harsh and wrongful.
Meaning as analysed by case laws
Following Judgement could be usefully referred to :
Dale and Carrington Investment (P) Ltd. and Anr. v Manu/sc/0748/2004: P. K Prathapan and Ors.(2005) 1SCC212
Kamal Kumar Dutta and Anr. v. Manu/sc/8408/2006 : Ruby General Hospital Ltd. and Ors. 2006(7) SCALE668.
Link of Draft Petition u/s 241 for your ready reference
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