Company Application I.A. No. 11859/08 in S.B.Company Appeal No.3/08 Smt. Yogeshwari Kumari & ors. vs. The Lake Shore Palace Hotels (P) Ltd. 1 IN THE HIGH COURT OF JUDICATUARE FOR RAJASTHAN AT JODHPUR. ORDER Smt. Yogeshwari Kumari vs. The Lake Shore Palace & ors. Hotels Pvt. Ltd. & ors. Company Application I.A.No.11859/08 in S.B. Company Appeal No.3/08 Date of Order: October 21st, 2008. PRESENT HON'BLE MR. PRAKASH TATIA, J. Servashri Vibhu Bakhru, Mrinal Kanti Mandal, Snechasish Mukherjee, Anjay Kothari, Niraj Kumar Jain & Tarun Joshi for the applicants. Servarshri M.S. Singhvi, Arun Bhansali, Vikas Balia and Mr. Ramit Mehta for the respondents. BY THE COURT: This application has been submitted by the appellant- applicants under rules 6 and 9 of the Companies (Court) Rules, Company Application I.A. No. 11859/08 in S.B.Company Appeal No.3/08 Smt. Yogeshwari Kumari & ors. vs. The Lake Shore Palace Hotels (P) Ltd. 2 1959 read with Order 1 Rule 10, CPC seeking permission to implead the Lake Palace Hotels & Motels Private Limited having its registered office at City Palace, Udaipur in S.B. Company Petition No.3/2008. The appellants have filed Company Appeal No.3/2008 against the judgment and order dated 4.12.2007 passed by the Company Law Board, Principal Bench, New Delhi in Company Petition No.32/2005. It is alleged that the Lake Palace Hotels & Motels Private Limited is also a closely held family company just like respondent no.1-Company and shares of both the Companies being held by the progeny of the late Maharana Bhagwat Singhji Mewear. Respondent no.2 is the Managing Director of respondent no.1- Company as well as the Lake Palace Hotels & Motels Private Limited and, therefore, holding overall control and management of both the companies. Since respondent no.2 raised technical objection that the Lake Palace Hotels & Motels Private Limited is not party in Company Application No.3/2008, therefore, the Company Application I.A. No. 11859/08 in S.B.Company Appeal No.3/08 Smt. Yogeshwari Kumari & ors. vs. The Lake Shore Palace Hotels (P) Ltd. 3 directions issued by the Company Law Board cannot be given effect. Therefore, it will be appropriate to implead the Lake Palace Hotels & Motels Private Limited as party in the Company Appeal No.3.2008. It is alleged that appellant no.1 holds 150 equity shares in the Lake Palace Hotels & Motels Private Limited and respondent no.2 is illegally refusing to transmit the said shares in favour of appellant no.1, therefore, also it will be appropriate to implead the Lake Palace Hotels & Motels Private Limited as party in the appeal. The learned counsel for the respondents raised preliminary objection and stated that the Lake Shore Palace Hotel Private Limited and the Lake Palace Hotels & Motels Private Limited are separate legal entities and in company matters of one company, no order can be passed with respect to the affairs of the another company. The respondents also denied holding of 150 equity shares of the Lake Palace Hotels & Motels Private Limited by appellant no.1 and said shares are in the name executor of the Will of late Company Application I.A. No. 11859/08 in S.B.Company Appeal No.3/08 Smt. Yogeshwari Kumari & ors. vs. The Lake Shore Palace Hotels (P) Ltd. 4 Maharana Bhagwat Singhji Mewar and it is also submitted that the Will of late Maharaja Bhagwat Singhji Mewar has not yet been administered on account of interim injunction passed by the trial court in the partition suit, as appellant no.1 herself is opposing the application filed by the respondents for modification of the interim order. Therefore, there arises no question of transfer of the said shares in favour of appellant no.1. Heard learned counsel for the parties on the arguments advanced in support of their contentions, which I considered along with the facts of the case. Since it is a matter relating to the two independent and separate Companies which are separate legal entities and since the relief in the main Appeal No.3/2008 has limited scope and the Lake Palace Hotels & Motels Private Limited was not party before the Company Law Board wherein the order has been passed on 4.12.2007, therefore, there appears to be no just and legal reason Company Application I.A. No. 11859/08 in S.B.Company Appeal No.3/08 Smt. Yogeshwari Kumari & ors. vs. The Lake Shore Palace Hotels (P) Ltd. 5 for enlarging the scope of Appeal No.3/2008 by impleading the Lake Palace Hotels & Motels Private Limited as party in the appeal. Therefore, the Company Application IA No.111859/2008 for impleading the Lake Palace Hotels & Motels Private Limited is dismissed. (PAKASH TATIA),J. mlt