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Issues Involved:
1. Legality of the registration of shares in the name of the second respondent. 2. Allegations of fraud, misrepresentation, and undue influence. 3. Jurisdiction and appropriateness of summary proceedings under Section 155 of the Companies Act, 1956. Detailed Analysis: 1. Legality of the Registration of Shares: The petitioner, Smt. Kamla Devi Mantri, contended that the second respondent, Smt. Sarla Devi Somani, wrongfully and illegally registered herself as the second joint holder of 10,774 ordinary shares. The petitioner argued that she neither intended to transfer the shares nor received any consideration for such a transfer, asserting that the second respondent had no right, title, or interest in the shares. The petitioner sought rectification of the register of members by deleting the second respondent's name, retaining her name alone on the share certificates. 2. Allegations of Fraud, Misrepresentation, and Undue Influence: The petitioner claimed that due to her poor health and inability to read or write, she trusted her son and grandsons to manage her financial matters. She alleged that the second respondent, taking advantage of this trust, manipulated her into signing documents that led to the wrongful registration of shares. The petitioner discovered the issue in October 1987 and subsequently sought rectification, but the company refused without a duly executed transfer deed by both parties. The petitioner argued that her signatures were procured through fraud, misrepresentation, and undue influence, and she had not received any consideration for the alleged transfer. The second respondent, through her attorney, countered that the petitioner had irrevocably decided to transfer the shares to joint names with the second respondent to ensure that the latter would become the sole owner after the petitioner's death. This decision was documented in a registered will dated December 13, 1988. The second respondent argued that the petitioner acted with full understanding and independent legal advice. It was further claimed that the petitioner's eldest son, Hari Prasad Mantri, isolated her and dominated her will, influencing her to file the petition with ulterior motives. 3. Jurisdiction and Appropriateness of Summary Proceedings: The court acknowledged that the proceedings under Section 155 of the Companies Act are summary in nature and intended for non-controversial matters or where quick decisions are necessary to prevent irreparable injury. Citing precedents, the court emphasized that serious disputes involving fraud, misrepresentation, and undue influence should be adjudicated in a civil court, not through summary proceedings. The court referred to several judgments, including: - S. Bhagat Singh v. Piar Bus Service Ltd.: Section 155 is not for settling controversies requiring regular investigation. - Jayashree Shantaram Vankudre v. Rajkatnal Kalamandir P. Ltd.: Complicated issues should be resolved in civil court. - Surendra Kaur v. Singh Engineering Works (P.) Ltd.: Disputes involving serious questions of fact are outside the scope of Section 155. - Public Passenger Service Ltd. v. M.A. Khader: Matters requiring detailed examination should be decided in a suit. Given the allegations of fraud, misrepresentation, and undue influence, the court concluded that these issues necessitate detailed evidence and cannot be resolved through summary proceedings. Therefore, the court dismissed the petition, advising the petitioner to seek remedy in a civil court. Judgment: The petition filed by the petitioner was dismissed with no order as to costs, as the court found it inappropriate to adjudicate the matter under the summary jurisdiction of Section 155 of the Companies Act, 1956.
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