Share transfer to legal heirs upheld after company's inconsistent objections on limitation and documentation were rejected.

A company's refusal to register transfer and allotment of shares to legal heirs was found unsustainable where its correspondence had required the heirs to obtain court orders and complete formalities, and they acted on that representation. After the Letter of Administration was obtained, the company could not resile from its earlier stand or insist on additional affidavits and indemnities without justification. The objection of limitation was rejected because it had not been consistently raised at the relevant stage, and the petition was held maintainable. The legal heirs were held entitled to transfer of the shares on payment of the agreed consideration.

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Issues: Whether the refusal to register the transfer and allotment of 60,000 shares was sustainable, and whether the objection as to limitation and maintainability could defeat the claim of the legal heirs.

Analysis: The correspondence showed that the company required the legal heirs to obtain court orders and to complete the formalities before transfer, and the heirs acted on that representation. The company did not consistently object on limitation at the relevant stage and, after seeking and receiving the Letter of Administration, could not resile from its earlier stand. The Tribunal found that the appellant had accepted the entitlement to the shares subject to payment and documentation, and that repeated insistence on further affidavits and indemnities after grant of the Letter of Administration was unjustified. The objection of limitation was therefore rejected, and the petition was held to be maintainable. The legal heirs were held entitled to the 60,000 shares on payment of the consideration.

Conclusion: The refusal to register the transfer was held unsustainable, the limitation and maintainability objections failed, and the direction to transfer 60,000 shares was affirmed in favour of the respondent.

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