https://www.taxtmi.com/caselaws?id=399667 A company's lien over fully paid-up shares, where the articles do not provide a sale mechanism, gives only a right of retention and not authority to auction or transfer the shares to recover dues. In the absence of a proved contractual basis for recovering alleged rental arrears through shares, the unilateral sale could not be justified. Because the articles also did not prescribe a lawful auction procedure and the transfer was effected without consent or compliance with share transfer requirements, the auction and allotment to a third party were invalid. The register of members was ordered corrected by restoring the shareholding, and further transfer or sale without express consent was restrained. en-us Thu, 05 Mar 2020 00:00:00 +0530 Fri, 16 Oct 2020 12:23:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=399667 A company's lien over fully paid-up shares, where the articles do not provide a sale mechanism, gives only a right of retention and not authority to auction or transfer the shares to recover dues. In the absence of a proved contractual basis for recovering alleged rental arrears through shares, the unilateral sale could not be justified. Because the articles also did not prescribe a lawful auction procedure and the transfer was effected without consent or compliance with share transfer requirements, the auction and allotment to a third party were invalid. The register of members was ordered corrected by restoring the shareholding, and further transfer or sale without express consent was restrained. Case-Laws Companies Law Thu, 05 Mar 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=399667