Oppression and mismanagement - Transfer of shares - Once it is...

Oppression and mismanagement - Transfer of shares - Once it is accepted that the Appellant can also challenge the transfer of shareholding as being oppressive and as being intended only to defeat the right of the Appellant to maintain his petition under Section 397/398 of the Act, an opportunity should have been granted to the Appellant to peruse the register of members and, if so advised, challenge the same in accordance with law. The Company Petition, on the averments made in the Petition itself, could not have been thrown out at the threshold without granting such opportunity to the Appellant. - HC