A petition signed by 100 members of a company has been moved to Company Law Board (CLB) for prevention of mismanagement. Later on, half of the members (signatories) withdrew their consent after filing the petition. Exami

The petition for relief against mismanagement does not cease to be maintainable merely because some members withdrew their consent after its presentation. Once the consent has been given by the requisite number of members by signing the application, the application may be made by one or more of them on behalf and for the benefit of one of them. It has been held by the Supreme Court in Rajahmundry Electric Supply Corporation Ltd. v. A Nageswara Rao and others AIR 1956 SC 213 , that if some of the consenting members have, subsequent to the presentation of the application, withdrawn their consent, it would not affect the right of the applicant to proceed with the application. Obtaining of consent is a condition precedent to the making of the application and hence a consent obtained subsequent to the application is ineffective. [ Makhan Lal Jain v. The Amrit Banaspati Co. Ltd., I.L.R. (1954) All. 131 .] Therefore, in the given case the withdrawal of consent by some of the members shall not affect the success of the remaining applicants.