1998 (9) TMI 16

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.... interested". The company is regarded as one in which the public are substantially interested, inter alia, if the "shares in the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than fifty per cent. of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by--- (a) the Government, or (b) a Corporation established by a Central, State or Provincial Act, or (c) any company to which this clause applies or any subsidiary company of such company where such subsidiary company fulfils the conditions laid down in clause (b) of section 108" and where th....

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....al entities, to hold the shares to the exclusion of others mentioned in other parts of section 2(18)(b)(B) of the Act. The use of the word "or" after each and every sub-clause is only to indicate that the shares will be held by any one of those listed legal entities or individuals and not that they should be held by one to the exclusion of others. No plausible reason for adopting the construction proposed by the Revenue, which could be regarded as being the object sought to be achieved by the provision, has been suggested to us. The argument advanced is solely on the basis of the word "or" employed after each and every sub-category that each sub-category must be regarded, as exclusive and not capable of including any of the other categories....

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....t the shares held by all the individuals or entities mentioned in sub-clauses (a) to (c) of the sub-section are required to be taken cumulatively. There is no error in that view of the Tribunal, which view is one which can be said to be evident, from a mere reading of the statutory provision. The enumeration of the entities and individuals in sub-clauses (a) to (c) is in the context of defining a company in which the public are substantially interested. The interest of the public in the company is regarded as having been sufficiently established, if the shares are held by any one or more of the individuals or entities mentioned in sub-clauses (a) to (c). The object of the definition here is with regard to the substantial interest of the p....