AGM-Annual General Meeting

In this case, the Secretary of the Apex Council of the DDCA has approached this Court by filing the present Writ Petition under Article 226 challenging EGM notice and stated that the Resolution appointing the Ombudsman cum Ethics Officer of the DDCA had been passed clandestinely and is, therefore, invalid and the notice calling for a meeting for ratification of the said Resolution should be quashed and set aside.
Hon’ble High Court held that though Section 244(1)(b) of the Companies Act provides that an application under Section 241 of the Companies Act can be entertained only if it is supported by one-fifth of the total number of members of the company but the NCLT has power to waive of this requirement. The Petitioner, therefore, ought to have approached the NCLT and if the NCLT would have refused to waive off the stipulated requirement of support of one-fifth members of the company then it was always open for the Petitioner to approach this Court by contending that no equally efficacious alternative remedy is left to him. It cannot be said that if this Court does not exercise its jurisdiction under Article 226 of the Constitution of India an irreversible damage would be caused to the DDCA and the same cannot be rectified by the Courts or that the DDCA will be subjected to an irreparable loss which needs urgent restraint orders.