Private limited company managing director’s dispute p Venugopal was declared he was managing direct

Dispute between p.Venugopal vs ch.prasad rao Pardha real estate private limited it is a company,founder p.vanugopal(MD)and adi reddy(Director) The company acquired about 180 acres of land in Muttangi, Chitiku! Villages of Patancheru Mandal of Medak District. Due to the unrest in the company, the Board of Directors conducted a meeting on 3-4-95, passed an emergency resolution delegating the entire powers to the p.vanu gopal As per the agreement, dt. 25-5-95, the p.Venugopal are authorized to act on behalf of company for purchase of the land and to run the business. The plaintiffs are at liberty to re-book and sell the balance 1000 plots of the scheme and the other Directors have no right or claim towards the said plots The Ch.Prasad rao is entitled for interest at Rs.3/- per cent if his investment is more than Rs 5.00,000/- after verification of the accounts books. . the P.VENUGOPAL was removed from the post of Managing Director by an emergency resolution, dt. [deleted] passed by the Board of Directors. The first plaintiff was compelled to resign and hand over all the men and machinery including the administration arid management of the company to the Board of Directors. Consequently, the CH.PRASAD RAO was authorized by the Board of Directors to hold the post of Managing Director and he was appointed as Managing Director on [deleted]. While So, the Directers received complaints on the misappropriation of the P.VENUGOPAL and mismanagement of the funds by him. Therefore, an agreement, dt. 25-5-95 was entered into between the Board of Directors and the P.VENUGOPAL . But the P.Venugopal have failed to keep up the promises made to the Board of Directors and they breached the agreement. The P.Venugopal transferred some of the lands of the company in the names of his wife sister, son and others with a malafide intention to obtain illegal gain for himself. The P.Venugopal miomanaged the affairs of the company and they have directly taken a sum of Rs.30,00,000/- They also collected the amounts from the agents directly without entering into the books of accounts and thus he used the said amounts for his selfishness Due to the conduct of the P.Venugopal,some of the members approached the Consumer Forums and obtained the reliefs Therefore, the Board of Directors have decided to remove the first P .Venugopal from the post of Managing Director and therefore an agreement, dt. 16-4-97 was entered between the P.Venugopal and the Board of Directors. The first P.VENUGOPAL resigned from the post of Managing Director Thus due to the conduct of the p.Venugopal the CH.PRASA RAO was appointed as Managing Director and he would re-shape the entire organization in the interest of the general public and also the company There is no substance in the contention of the P.VENUGOPAL that the ch.Prasad rao along with his men on 24-7-97 approached the p.Venugopal and abusid them in filthy language and t