before the company law board - Company Law Board Mumbai Bench

53. It is further submitted that the petitioners decided to inspectthe records of the R1 with the ROC and inspected the records of theR1 on 10 th April, 2008 and shocked to know that further 49,960equity shares have been allotted by R1 Company and the paid upshare capital has been increased to 50,000 equity shares. Thepetitioners have also come to know that R2 to 6 are using the propertyof R1 situated at Andheri (East), Mumbai for their own personal useand not for the purpose of the business of R1; and it is found thatthere is no revenue generating for R1 which is clear and unambiguouscase of diversion and siphoning off the funds of R1 Company. Thepetitioners have also come to know that the R2 to 6 have given theproperty of R1 Company situated at Andheri (East), Mumbai on leaseto R7 without the knowledge and consent of the petitioners. Thepetitioners requested the R2 to 6 as well as the R7 to produce thecopy of the Lease Agreement entered into between the R1 and R7.The petitioner No.1 has come to know from the correspondenceexchanged with the R7 that the said purported lease agreement wasapproved in the alleged Board Meeting held on 15 th December, 2005while the fact is that the petitioner No.1 never received any notice ofthe said alleged Board Meeting of the R1 Company. The respondentsare using the R1 Company as a vehicle for their personal enrichment.The petitioners have now also learnt that as a part of their design todeny and deprive the legitimate rights and expectations asCP 15/2008P Exports