Transfer of Shares in Companies Act

Transfer of Shares in Companies Act

Where the appellant’s shares in respondent-company were transferred to respondent No. 3 without notice, transfer of shares in name of respondent No. 3 was illegal and appellant’s name was to be restored in the register of members.

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI
Sangeeta Maheshwari
v.
Premsagar Agricultural (P.) Ltd.
COMPANY APPEAL (AT) NO. 11 OF 2018

Section 59, read with section 241, of the Companies Act, 2013 – Register of members – Rectification of – Appellant filed petition under section 59 before NCLT alleging that 200 shares held by her in respondent-company were illegally transferred in name of respondent No. 3 –

NCLT held that petition was not within time and petitioner was not entitled for any relief of rectification of Register of members on grounds of delay and laches – Whether since appellant gave sufficient ground for delay in filing petition, Tribunal should not have dismissed petition on technical grounds but should have decided petition on merits – Held, yes – Whether since it was established that shares in name of appellant had been transferred in name of respondent No. 3 without notice, impugned order passed by NCLT was set aside and appellant being found to be rightful holder of 200 shares transfer of shares in name of respondent No. 3 was held illegal and appellant was restored as holder of those shares – Held, yes [Paras 30 and 35]

CA Amresh Vashisht
Meerut
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