before the company law board - Company Law Board Mumbai Bench

15(ii) Shri Anil P.Sahu (R3) 29.10.1982(iii) Shri Sudhir Awasthi (R4) 27.8.2003(appointed in the meeting held illegallyby R2 & R3 calling it a Board Meeting)(iv) Shri Naresh Mangal (R5) 27.8.2003(appointed in the meeting held illegallyby R2 & R3 calling it a Board Meeting)8. It is submitted that duly convened Board meeting of Directors ofR1 was held on 4 th August, 2003. It was noted that R2 disbursed variousloans to three companies namely M/s.Flora Infotech Private Limited,M/s.Flora Fenin Private Limited and M/s.Vishwa Extrusion Private Limitedin which the said Mr. Sanil P. Sahu (R2) and his family held direct andindirect interest. The said loans were granted without knowledge of the Boardof Directors and without disclosure of interest by R2 in those companies,much less with the prior approval of the Central Government, in crassviolation of the provisions of Sec.295 and 299 of the Act. The RegionalDirector has filed prosecution proceedings against R2 under Sec .283(1)(h) ofthe Act. The Board of Directors authorized R6 to take appropriate action andit was also directed that Mr.Sanil P.Sahu (R2) shall repay the loan amountalong with interest to the Company. As a counter blast to the above decisionof the Board in its meeting held on 4.8.2003, R2 and 3 held a so called BoardMeeting on 27.8.2003 for which no notice was given to any other directorsbefore holding the said meeting. None of the Respondent Nos. 6,7,8,9,10 and11 who were the only other directors were informed of the said meetingCP 28/2010Union vs Gwalior