TaxTMI 
TaxTMI 
2011 (7) TMI 1013
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....er 20 share certificates and 20 transfer deeds in respect of the said shares which 'were sold and transferred to the petitioner by the respondent Nos.5 to 13 through the respondent No. 4. At the relevant time as the petitioner had no PAN Card number in her name, the demat account number was not obtained by her and, hence, the said shares could not be transferred in the name of the petitioner. 2. It is submitted that upon obtaining PAN card, bearing No. AKMPD8832H in the year 2007, the petitioner went to the Bombay Stock Exchange in order to get the said shares listed in her demat account, but to her utter surprise and dismay she found that the shares from the Folio. No. HKJ-55832, Folio No. HKJ-54880, Folio No. HKD-58717, Folio No. HKS-58755 and Folio NO. HKS-59560 ('the said transferred shares') out of the said shares, were sub-divided and had already been transferred to various accounts and further dematerialised by TSR Darashaw, share transfer agent of the Rl-company. The petitioner immediately brought this above fact to the notice of the respondent No. 4 and inquired as to how could the shares be sub-divided and transferred without her knowledge and signature when she was th....
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....d by the said shareholders. It is stated that the petitioner had informed these respondents with regard to her alleged right in respect of the said shares through her advocate's notice dated 2nd November, 2007 which was accordingly replied to by the respondent No. 3 vide letter dated 15th November, 2007, wherein it was specifically mentioned that some of the shares were dematerialised and details of the same were given to the petitioner's advocate. It is further stated that the sub-division of the shares in the year 2005 was in accordance with the resolution passed by the shareholders of the respondent No. 1 company at its extraordinary general meeting ('EGM') held on 28th October, 2005 and the said sub-divided shares were despatched to the shareholders whose names had appeared in the register of members as on the record date being 16th November, 2005 as per terms and conditions of the said issue. The petitioner though having allegedly purchased the said shares in the year 2000 had never lodged the shares for' transfer and had indicated her possession of the same in the year 2007. It is stated that the main dispute in the present case is between the petitioner and the respondent No....
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....each and respondent Nos.9 and 10 for 150 shares of Rs. 10 each in the year 2004 and 2003, respectively after due verification and compliance of the required procedures and the same were dematerialised in the year 2004. I say that the respondent Nos.5, 6, 9 and 10 are no longer the registered shareholders in the register of members of the respondent No. 1 company. It is further stated that in February 2007, the respondent Nos.7 and 8 have dematerialised 3,500 shares of Re. 1 each issued in lieu of 350 shares of Rs. 10 each against Reference Folio HKS59560, claimed to have been purchased by the petitioner. The respondent No. 13 had transferred 500 shares of Re. 1 each issued in lieu of 50 shares of Rs. 10 each in favour of Mr. Shidlingawa Nagappa Kuri in July 2007 and the same were dematerialised by Mr. Shidlingawa Nagappa Kuri in September 2007 and as such the respondent Nos.7 and 8 for Reference Folio HKS59560 and respondent No. 13 are no longer the registered shareholders. 6. It is stated that 1,500 shares of Re. 1 each against Reference Folio HKS59600 and 500 shares of Re. 1 each against Reference Folio HKD58717 are still held in physical form in the names of respondent Nos.7,....
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....dent is only deemed to be registered owner for the purpose of effecting transfer of ownership of shares on behalf of the beneficial owner and in terms of section 10(3) of the Depositories Act, 1996, the Depository neither has any right nor it suffer any liability in respect of the shares that have been dematerialised by the shareholders. The securities in a depository are held by the beneficial owners and the beneficial owners enjoy ownership rights in terms of section 10(3) of the said Act. It is further stated that this respondent has a limited role to keep the shareholding in demat form and there is no allegation or grievance of the demat account. Therefore, this respondent prays this Bench to discharge them from the proceedings. 8. The respondent No. 10 filed an affidavit and stated that the shares belonging to him have been sold in the month of November 1999 through his broker and received payment from them by cheque and he handed over the share transfer deed duly signed by him along with share certificate. He further stated that under bona fide belief that he lost the shares during the year 2004, applied for duplicate shares after due compliance and obtained the duplicate ....
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....lanation for not lodging the shares with the company for transfer within reasonable time. Therefore, it is complete fault and negligence on the part of the petitioner and cannot be blamed on the company and other respondents. The petitioner filed the present petition under section 111 of the Act is also mis-application on the ground that the said section could be invoked only in respect of private companies. The correct provision is section 111A of the Act. Irrespective of technicalities, under section 111 the person aggrieved, or any member of the company may apply to the CLB for rectification of the register, provided if a company refuses, whether in pursuance of any power of the company under its articles or otherwise to register the transfer of, or the transmission by operation of law of the right to, any shares or interest of a member in or debentures of the company it shall within 2 months from the date on which the instrument of transfer or the intimation of such transmission as the case may be was delivered to the company, sent notice of the refusal to the transferee and the transferor or to the person giving intimation of such transmission, as the case may be, giving reaso....