9911796707
TMI Blog1984 (7) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... company incorporated under the Companies Act, for declaration that the plaintiff was the owner of 900 equity shares of East India Film Co. Pvt. Ltd. and for a decree directing rectification of the share register of the company by inserting the plaintiff's name in respect of those shares. After the suit was instituted, a written statement was filed on behalf of the defendants. It appears that there were protracted litigation between the parties in other proceedings. But ultimately when this suit came up for hearing, the defendants chose not to contest the suit. The propounders of the will of Motilal Chamaria, defendants Nos. 1 and 2, were dead at the time the suit was taken up for hearing. The advocate-on-record on behalf of defendants Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the plaintiff and the dividend was accordingly paid to the plaintiff on the 900 shares even during the lifetime of Motilal. This arrangement was confirmed by a writing on or about January 8, 1961, and that writing is set out in annexure "A" to the plaint. Motilal Chamaria died intestate on June 22, 1967. The plaintiff's case is that after the death of Motilal, the company has not rectified the share register by inserting the name of the plaintiff as the holder of the said 900 shares nor has the company returned the share scrips to the plaintiff. The plaintiff prayed for declaration that she was the owner of the said 900 equity shares of the defendant company as well as a direction for rectification of the share register. The plaintif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e plaintiff the entire amount of dividends and there was a mere direction that those shares would be transferred to her as one of his heirs after his death. We are of the view that the appellant is entitled to succeed in this case. The plaintiff has amply proved that the said 900 shares were handed over to her along with a duly attested blank transfer form by her husband Motilal in January, 1961. She has stated that all the dividends on 900 shares thereafter were paid to her. The gift was complete as soon as the share scrips along with the transfer deed were given to the plaintiff although the transfer was not recorded in the books of the company. There cannot be any doubt that the ownership of the shares passed to the appellant when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he owner of the shares and the gift was completed by the delivery of the share certificates along with the blank transfer form duly signed by the transferor. The plaintiff has acquired a complete legal right to have the shares registered in her name. The deed of gift dated January 8, 1961, recites; "That out of natural love and affection for my wife, Smt. Sheila Devi, whom I married on April 5, 1953, I undertake to give to her the entire amount of dividend which will be declared by the East India Film Company (P) Ltd., 68, Cotton Street, Calcutta, from year to year henceforward, i.e., from January 1, 1961, in respect of all shares owned by me in my name and in benami names of others in cash irrespective of income-tax deductions. That afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the transfer will not be registered in the name of the plaintiff during his lifetime, but that will not prevent the transfer from being valid and effective. The learned trial judge placed reliance on the case of Amarendra Krishna Dutt v. Monimnnjary Debi, AIR 1921 Cal. 148. But the correctness of that decision was doubted by the Supreme Court in the case of Vasudev Ramchandra Shelat v. Pranlal Jayanand Thakar [1975] 45 Comp. Cas. 43 (SC). The Supreme Court observed that the Calcutta High Court's view was "in conflict with the law declared in the cases cited by the appellant which we approve." The point of time at which the plaintiff lodged the share certificates with the company is quite immaterial. The plaintiff has proved ..... X X X X Extracts X X X X X X X X Extracts X X X X
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