2019 (2) TMI 1988 - Tri - Companies Law

Rectification in the register of shares - section 59 of Companies Act, 2013 read with Sec.241-242 of the Companies Act, 2013 - HELD THAT - The Respondents are directed to maintain status-quo of shareholding pattern of the Company till further orders. Further the Respondents are directed to maintain Status-quo regarding alienation or create any encumbrance in relation to the properties of the 1st Respondent Company - Respondents are directed to produce all primary records/documents as mentioned on or before 12.02.2019 with a specific list and file in the Registry for the purpose of verification by the Petitioners as required and prayed. Put up the matter on 18.02.2019.

Summary

Issues:
1. Rectification of shareholding under Companies Act, 2013.
2. Interim reliefs sought by petitioners.

Analysis:

1. Rectification of shareholding under Companies Act, 2013:
The petitioners claimed that shares mentioned in the petition should have been registered in their name but were wrongly in the name of R2 as per the company's Annual Returns. The petition was primarily for rectification under Section 59 of the Companies Act, 2013, along with Sections 241-242. The Tribunal acknowledged the petitioners' entitlement under Section 244 of the Companies Act, even without considering the rectification prayer, and admitted the matter.

2. Interim reliefs sought by petitioners:
a. The Tribunal directed the respondents to maintain the status quo of the shareholding pattern of the company until further orders.
b. The respondents were also directed to maintain status quo regarding alienation or encumbrance of the company's properties.
c. The Tribunal declined to appoint a Commissioner at that stage but instructed the respondents to produce all primary records and documents by a specified date for verification by the petitioners.
d. The petitioner was directed to issue another notice to the respondents for appearance, with time granted for filing a counter, and the matter was scheduled for further hearing on a specific date.

In conclusion, the Tribunal addressed the issues of rectification of shareholding under the Companies Act, 2013, and granted interim reliefs as requested by the petitioners, ensuring the maintenance of the status quo and preservation of company records pending further proceedings.