2006 (3) TMI 732 - Board - Companies Law

Summary

Issues: Delay in filing company petition seeking rectification of register of members.

The judgment pertains to an application filed to condone the delay in filing a company petition under section 111A of the Companies Act, 1956, seeking directions against a company for rectifying the register of members. The applicant claimed to have purchased shares in 1994 and forwarded the necessary documents for transfer, but the transfer was allegedly made to third parties fraudulently. The applicant approached the Company Law Board after more than a decade, seeking rectification. The respondents argued that the petition was time-barred as the applicant failed to pursue the matter diligently. The Board considered the timeline of events, noting that the applicant had reminders and correspondences with the company and SEBI but failed to take timely action. The Board found that the applicant's delay of over ten years in approaching the CLB was unjustified, especially considering that the shares were transferred to third parties in 1996. The Board dismissed the application, stating that the delay could not be condoned, and the petition was rejected without delving into its merits.