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TMI Blog2010 (9) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 83620 07722629-07722665 37 Total : 112 3. It is to state that late Mr. Baldev Enand gifted these shares to the petitioner in the month of May, 2005. With the avowed purpose of transfer of these shares in the name of the petitioner, he sent a letter on 23-5-2005, to respondent No. 1 company informing that Mr. Baldev Enand had gifted the said shares to the petitioner by virtue of share transfer deeds duly signed by him and witnessed and which were also attested by a Notary Public of the United State of America. 4. It is submitted that late Baldev Enand was a permanent resident of the USA and had been residing there since he left India in the year 1982. Before he died on 24-1-2006, he had been in nursing care for a long time. Therefore, the petitioner issued a letter dated 23-5-2005, to the company secretary, informing them that Mr. Baldev Enand had left India in the year 1982 and had not been residing in Delhi. The late Mr. Baldev Enand is the grand uncle of the petitioner. The petitioner made a request to the respondents to transfer the shares gifted by Mr. Baldev Enand in his name. Since the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dev Enand had similarly been transferred to the petitioner in similar circumstances after the present petitioner had issued an indemnity bond in favour of ITC. On 5-10-2005, the petitioner issued another communication to the respondents wherein he enclosed application form for changing the signature, as originally submitted. A photocopy of a newspaper cutting published in The Statesman, in respect of loss of share certificates of Mr. Baldev Enand of ITC Ltd., was also submitted. The petitioner also enclosed the letter dated 6-7-2005, signed by Mr. Baldev Enand, informing that he lost original 112 shares, and requesting for the issue of duplicate shares and for registering the transfer of the said shares to the petitioner. Respondent No. 2 informed the petitioner vide its letter dated 26-10-2005, that the matter had been referred to respondent No. 1 company and it would take action on receiving instructions from respondent No. 1 company. Then on 5-12-2005, respondent No. 2 wrote to the petitioner stating that respondent No. 1 company was insisting on issue of duplicate shares for the original 112 shares. In the meanwhile the petitioner had located the original share certificates whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peared for the respondents. Even on the last two occasions, i.e., on 19-4-2010 and 15-6-2010, no one appeared on behalf of the respondents, in spite of notices by this Bench dated 22-3-2010, 21-4-2010 and 18-6-2010, intimating the date and time of the hearing of the matter. Since reasonable opportunity was given to the respondents to be heard, none appeared on behalf of the respondents. The matter is taken up for hearing as per the date fixed and heard counsel for the petitioner and would be dealt with on the basis of pleadings and documents filed by the respective parties. 8. Respondent Nos. 1 and 2 filed their written arguments opposing the relief sought for by the petitioner stating that the petitioner had deliberately failed to produce the mandatory and necessary documents as demanded by the respondents prior to the death of Mr. Enand. The petitioner is trying to take advantage of his own fault by raising different contentions and delaying the matter. It is beyond the purview of the Company Law Board to ascertain whether in fact there was any change in the signature of late Mr. Baldev Enand. The only remedy available to the petitioner now is to seek probate of the Will, if an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and his interests in India and also stated that the signature of Mr. Baldev Enand may not be the same as used to be due to his old age and Parkinson disease, and the share transfer form was duly witnessed and notarised at United States. Further, it is stated that the petitioner will furnish the indemnity bond for the satisfaction of respondent No. 1 company. The petitioner vide his letter dated 28-7-2005, enclosed the documents regarding share transfer form in respect of 140 shares duly signed by Mr. Baldev Enand and stamps worth Rs. 770 and prescribed application form, for change in signature signed by Mr. Baldev Enand duly notarised at USA and also duly attested by the Bank Manager of the UCO Bank, Parliament Street, New Delhi where Mr. Baldev Enand was having his account. Further, the petitioner addressed a letter dated 1-9-2005, to respondent No. 2 reiterating the facts as stated in earlier letters and requested them to transfer the shares in his name. The second respondent vide their letter dated 19-9-2005, addressed to the father of the petitioner asking him to fulfil the requisite procedure as stated by them. In reply to the letter of the respondents, the father of the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Act, 1956, for transfer of shares. Having signed the share transfer form by both the parties in a bona fide manner and in perfect state of mind, transfer of shares cannot be withheld on the ground that the transferor is dead subsequently. Moreover, section 108 of the Companies Act, 1956, does not bar the same. Therefore, insistence on the legal documents for the purpose of transfer of shares by the respondents cannot be justified. It is also evident that in response to the respondents' suggestion and admission that Mr. Baldev Enand held 140 shares but not 112 shares and the same could be transferred on the basis of share transfer forms after affixing the stamp duty prescribed by law, the petitioner vide his letter dated 28-7-2005, sent all the required documents to respondent No. 2 along with Mr. Baldev Enand's letter dated 6-7-2005, requesting for transfer of shares. It is observed that the respondent-company and its share transfer agent made the petitioner to run from pillar to post, which act is not commendable. In view of the reasons stated above, I hereby direct respondent No. 1 company to rectify the register of members by deleting the name of late Mr. Baldev Enand and by i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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