before the company law board - Company Law Board Mumbai Bench

23contended that the respondents also have admitted the fact that theyhave not reached any agreement with the petitioner. Whatever maybe the reason, whether this Bench can go into the merits of the familyarrangement/settlement in a petition under Sec.397-398 of the Actwhen such family arrangement is sub-judice and subject matter of theHon’ble High Court of Bombay. In this regard the relevant provisionis necessary to emphasis. Any member of the Company whocomplains that the affairs of the Company are being conducted in amanner prejudicial to public interest or in a manner oppressive to anymember or members, may apply to the CLB by invoking theprovisions of Sec.397 of the Act and in case of mismanagement in theaffairs of the Company the member can invoke the provisions ofSec.398 of the Act, provided they qualify the required criteria asenumerated under Sec.399 of the Act. The proceedings before theCLB are summary in nature and the Bench upon adjudicating thematter after completion of its pleadings can pass orders as vestedunder Sec.402 to put an end to the affairs complained thereof to avoidwinding up of the Company in equitable manner. It is well settledlaw that if there is conflict between law and equity the law as suchmust prevail as held by the Hon’ble Apex Court in the matter ofVijay Narayan Thatte & Ors Vs State of Maharashtra & Ors.reported in ( 2009) 9 SCC 92. The legislation vested the powers toCLB, to deal with the oppression and mismanagement in the affairs ofCP 15/2008P Exports