9911796707
TMI Blog1983 (12) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... 111 of the Companies Act with regard to the transfer of certain shares. The Company Law Board has already disposed of those appeals and allowed them on July 13, 1983. Thereby the appellants before the Board, who were the transferees of certain shares, were made entitled to be registered as shareholders on the basis of those transfers. The opposition by the company to their transfer was negatived. The company then filed a writ petition against that decision of the Company Law Board, assailing the same on various grounds, but without success. The writ was dismissed on November 22, 1983. There is thus no further relief which can be granted to the company under the present application. Mr. Khanna, however, appearing for the company, has attem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver the management of the company from the earlier board of management and actively made efforts to rehabilitate it. According to Mr. Khanna, substantial funds were made available by the government bodies, with the result that the two vegetable ghee factories have started working and various liabilities discharged. Still there are, however, stated to be liabilities worth about rupees 6 crores, one-half of which are due to the Income-tax Department. Other substantial liabilities are due to the Morarka group on the basis of debentures worth rupees 95 lakhs which were issued in or about 1968, and which were pledged with the Morarkas. Considerable interest has already accrued on them. Mr. Khanna, however, states that he has mentioned these liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted in a rival business known as Amrit Vanaspati Co., there is every likelihood of the affairs of the present company being run to its detriment and to the benefit of Amrit Vanaspati Company. Against the denial of registration of the remaining shares, the transferees moved an appeal before the Company Law Board under section 111 of the Companies Act. They, at the same time, applied under section 155 of the Companies Act before the company court. The company, however, opposed the continuance of the two proceedings at the same time. Before the Company Law Board, opposition was raised to the maintainability of the appeals there, with the result that those appeals were disallowed on the simple ground that the petitions under section 155 befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd they can always assert their rights in case any acts detrimental to or prejudicial to the affairs of the company are attempted to be enacted. Moreover, Mr. Krishan Kumar, appearing for the transferees, has made no secret that these transferees are not too keen to retain the shares, and that if the company or anybody wants to purchase those shares at the present market value, they are ready to transfer them. They deny any motivation to capture the present company. The Company Court cannot look on patronisingly at the tendency displayed by managements of the companies or their shareholders to set at naught the too well-recognised concept of transferability of shares inherent in the Company Law and accepted all over the world. A public co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d company that any member of the public is entitled to subscribe to its shares remains, and must be upheld to the exclusion of any individuals or group interests. The approach in this matter has not to be allowed to be swayed by likes and dislikes of individuals or other considerations. That would be like placing momentary strains of expediency on the too well recognised concepts of a public limited company. It is futile to say that the sponsors of the company must in perpetuity continue to have a hold. Rather it is more the investment of the public money in the form of shares which ushers in the growth and development of the company. For the managerial capacities, the persons concerned are duly paid their emoluments, and they are not essen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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