9911796707
TMI Blog2006 (7) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... red the shares to certain individuals who have lodged their transfer deeds for entering their names in the place of the respondent. On some grounds, the appellant-company refused to effect the transfer of the shares held by the respondent and intimations were given to the transferees. Aggrieved by that, they have approached the Company Law Board by making a petition under section 111A(2) of the Companies Act, 1956 (for short "the Act"). Thereafter, the Company Law Board, tried to get the matter settled between the parties, but as there was no agreement, the Company Law Board proceeded to hear the petition on the merits. At that stage, on behalf of the company it was contended that the company petition filed by the respondent-transferor is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so none appeared for the respondent. Therefore, the matter is heard and is disposed of on merits. 5. The simple issue in this appeal relates to the maintainability of the appeal by the transferor of the shares. It would be appropriate to refer to the relevant provision, i.e ., section 111A(2) at this stage : "111A. Rectification of register on transfer. (1) In this section, unless the context otherwise requires, 'company' means a company other than a company referred to in sub-section (14) of section 111 of this Act. (2) Subject to the provisions of this section, the shares or debentures and any interest therein of a company shall be freely transferable : Provided that if a company without sufficient cause refuses to register t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shares, the right of appeal is provided only to the transferee, but not to the transferor as is provided under section 111. From the above provision, it is clear that a transferor cannot maintain the appeal in respect of companies that come under section 111A of the Act. 8. Further a perusal of the impugned order shows that the Company Law Board is under a wrong impression that it is a court of equity. The Company Law Board is a creature of statute and is a statutory body which is not at all a court of equity, but a statutory authority which has to discharge the functions within the limits of the statute, and it cannot go outside the statutory provisions, either on the ground of equity or otherwise. 9. Under the above circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X
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