2007 (10) TMI 690 - Board - Companies Law

Summary

Issues involved: Condonation of delay in filing necessary petition under Section 111A of the Companies Act, 1956 before the Company Law Board.

Summary:
1. The company application was filed under Section 5 of the Limitation Act, 1963, seeking condonation of a delay of 1,884 days in approaching the Company Law Board to direct the registration of share transfers. The delay was attributed to the company returning transfer forms without justification, leading to a civil suit being filed and subsequently redirected to the Company Law Board. The delay was claimed to be non-wilful by the applicants.

2. The opposition contended lack of details in the application and deemed the delay wilful, citing the applicants' negligence and failure to adhere to stipulated timelines. It was argued that the Company Law Board should not support negligent applicants, thereby declining their rights and ending harassment to the company.

3. The main issue was whether the applicants demonstrated sufficient cause for condoning the 1,884-day delay in filing the application under Section 111A. The applicants' explanation for the delay was based on the return of transfer forms and subsequent legal advice leading to the civil court and eventually the Company Law Board.

4. The facts revealed that the company had refused to register share transfers in 2002 due to signature discrepancies. Instead of approaching the Company Law Board, the applicants filed a civil suit in 2006, causing a significant delay. The lack of reasons for the delay and the vague nature of the application led to the dismissal of the condonation request by the Vice-Chairman.

5. Consequently, the application for condonation of delay was dismissed, with no costs imposed.