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Ownership of 900 equity shares of a company, validity of gift of shares, rectification of share register. Analysis: The case involved a dispute over the ownership of 900 equity shares of a company. The plaintiff claimed that the shares were gifted to her by her husband, who was the beneficial owner of the shares. The plaintiff provided evidence that the shares were handed over to her along with a blank transfer form, and all dividends were paid to her. The defendants did not contest the suit, and the trial judge initially ruled against the plaintiff, citing lack of evidence regarding the transfer of shares and possession of share scrips. However, the High Court held that the gift of shares was complete when they were handed over to the plaintiff, even though the transfer was not recorded in the company's books. The Court relied on the principle that the delivery of share certificates along with a signed transfer form constitutes a valid gift of shares, as established in previous legal precedents. The Court emphasized that the non-registration of the transfer in the company's books did not invalidate the gift, and the plaintiff acquired a legal right to have the shares registered in her name. The Court also addressed the conflict between the deed of gift and the subsequent document, noting that the plaintiff's version was accepted in the absence of any dispute. The Court rejected the trial judge's reliance on a previous case and highlighted the Supreme Court's approval of a different legal interpretation. The Court concluded that the plaintiff had proven her entitlement to the shares, and since the company did not contest the claim, there was no reason to deny the plaintiff's request for registration of the shares in her name. In the final judgment, the High Court allowed the appeal, setting aside the previous judgment. It declared the plaintiff as the owner of the 900 equity shares and directed the rectification of the share register to reflect her ownership. The Court also issued a mandatory injunction for the company to deliver the share certificates to the plaintiff after rectification, or to provide duplicate share scrips if necessary. The Court made no order as to costs, concluding the case in favor of the plaintiff based on the evidence presented and legal principles applied.
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