TaxTMI 
TaxTMI 
2022 (5) TMI 1449
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. It is seen from the records that during the pendency of the present Application, the Petitioner viz. Mr. MAM Ramaswamy had deceased on 02.12.2015. Thereafter, the Applicant in C.A. No. 1 of 2016 (which is renumbered as TCA/1/2016) viz. Dr. MAM Ramaswamy Chettiar of Chetinad Charitable Trust has moved an Applicant seeking themselves to be impleaded as proposed Petitioner in the place of deceased Dr. MAM Ramaswamy in TCP/1/2016. 3. It is also seen that another impleading Application was filed by one Mr. MAMR Muthiah, the adopted son of Dr. MAM Ramaswamy Chettiar vide CA/69/2016 seeking himself to be impleaded as proposed Petitioner in the place of deceased Dr. MAM Ramaswamy in TCP/1/2016. MA(CA)/9(CHE)/2021 and CA/40(CHE)/2021 4. In relation to MA(CA)/9(CHE)/2021 and CA/40(CHE)/2021, it is seen that both these Applications are filed for advance hearing of TCA/1/2016 and to hear the same on emergent basis. The said TCA/1/2016 has been heard in detail and is being disposed of by way of this common order and hence the prayer as sought for has become infructuous and accordingly MA(CA)/9(CHE)/2021 and CA/40(CHE)/2021 stands closed. CASE OF THE APPLICANT IN TCA/1/2016 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....02.1996 was contrary to the custom and usage of the Nattukottai Nagarathar community and contrary to the wishes of his father Raja Sir MA Muthiah Chettiar as expressed in his Will dated 09.02.1970. b. Under clause 5, the petitioner has referred to the constitution of Dr. MAM Ramaswamy Trust and Dr. MAM Ramaswamy Chettiar of Chettinad Charitable Trust. c. A perusal of clause 7 and 8 show that he has completely disowned Mr. MAMR Muthiah and does not intend to give any of his properties to him. d. In addition to the above, the petitioner has clearly stated that the MAMR Muthiah and his wife and children shall not perform any of the obsequies or ceremonies relating to his death or be in any manner associated with the same or be part of the same. e. Clause 10 shows that, out of the moveable properties belonging to him in the Schedule, the petitioner intends to transfer some of the moveable properties to and in favour of Dr. MAM Ramaswamy Chettiar Trust during his lifetime. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to step into the shoes of Dr. MAM Ramaswamy before this Tribunal in view of the fact that the deposits lying with the Respondent Company has been gifted to Dr. MAM Ramaswamy Chettiar Trust and consequent to the demise of Dr. MAM Ramaswamy on 02.12.2015 it had become the properties of the Applicant in view of clause 9(3) of the Deed of Trust dated 16.02.2015. CASE OF THE APPLICANT IN CA/69/2016 9. The Learned Counsel for the Applicant in CA/69/2016 contended that the Applicant viz. the adopted son is the sole Class - I heir of Dr. MAM Ramaswamy who died on 02.12.2015. It was submitted that the Applicant being the sole legal heir of the deceased, the Applicant was granted a legal heirship certificate from the Tahsildar of Mylapore Taluk, Chennai on 11.03.2016. It was submitted that the present Application under Section 73 and 74 of the Companies Act, 2013 was filed before the erstwhile Company Law Board. It was submitted that Regulation 28 of the Company Law Board Regulations, 1991 stipulates as follows; 28. Substitution of legal representative- (1) In the case of death of any party during the pendency of pro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r and the Charitable Trust had no locus to file any application before this Tribunal at the relevant time and continues to not have any locus till such time that its rights are determined by a competent court. 14. The Learned Counsel for the Applicant in CA/69/2016 submitted that it is the case of the Charitable Trust that its interest in the deposit which is the subject matter of the main Application CA/1/2014 vested in it on 02.12.2015. Therefore, it was submitted that the Application of the Charitable Trust under Regulation 28 of the Company Law Board is not maintainable on the ground that it is a transferee and not a successor - in - claim of the deposit placed with the Respondent Company by the deceased applicant. 15. The Learned Counsel for the Applicant further submitted that while the alleged Will dated 18.02.2015 of the deceased is relied upon by the Charitable Trust in para 3(iii) of its substitution application, the Petition filed by the Charitable Trust seeking grant of letter of administration of the alleged Will being O.P. No. 894 of 2016 does not contain this deposit as part of the estate of the deceased application. Hence it was submitted that it is evident th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the gift of moveable assets is complete by 06.04.2015, why there is reference to oral gift on 03.09.2015 and why there is no letter of acceptance of the gift ever produced. Hence it was submitted that all these disputed questions cannot be adjudicated summarily and therefore the Applicant in the substitution application viz. the charitable trust has to be non-suited. REPLY OF THE RESPONDENT 19. The Respondent has filed its reply stating that the uncontested factual position is that the deceased Applicant gave a "short - term - interest - free loan" to the Respondent Company and the Applicant Trust contends that the same attained the nature of "deposit" which is disputed by the Respondent Company. It was submitted that the Respondent Company has filed documents to demonstrate that with the consent of the deceased Applicant (during his lifetime) the same was converted into long term (10 years) interest free loan, and after adjusting the amounts payable by the deceased Applicant, an amount of Rs. 38,52,88,189/- is standing in the books and it becomes due to the legal heir only in March 2023 as may be decided by the Hon'ble High Court. 20. It was also submitted that assu....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 23. Further, it is also seen that the Petitioner viz. Dr. NAM Ramaswamy has also executed his last Will and Testament dated 18.02.2015 as Doc. No. 16/2015 in the office of the SRO Mylapore. The Clause 5, 7, 8 and 9 of the Will and Testament dated 18.02.2015 is extracted hereunder; 5. On 25.09.2014, I had executed a registered Will, registered as Document No. 94/BK3/2014 on the file of Sub Registrar, Mylapore bequesting the movable and immovable properties, which I am entitled to and which I would acquire or inherit in future, in favour of Dr. M.A.M. Ramaswamy Chettiar of Chettinad Trust. However, since I was desirous of creating Trust even during my lifetime and I have on 09.02.2015, created a trust under the name and style of "Dr. M.A.M. Ramaswamy Chettiar of Chettinad Charitable Trust", registered as Document Number 51 of 2015 in the office of Sub Registrar, Mylapore and created another Trust under the name and style of "Dr. M.A.M. Ramaswamy Chettiar Trust" on 16.02.2015 vide Registered document number 61 of 2015 on the file of Sub Registrar, Mylapore, I am cancelling the Will which was executed by me on 25.09.2014 vide Registered Document No. 94/BK3/20....