Issuance of additional shares by respondent with mala fide intention to gain major shareholding held

CL : Where application under section 397 was filed alleging that additional share capital of respondent-company were issued for purpose of cornering majority shares in favour of respondent, in view of fact that balance sheet of respondent-company revealed that it did not have immediate requirement of fund by way of issue of share capital, contention of petitioners could not be disbelieved