9911796707
TMI Blog2010 (9) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent No. 2 to respondent No. 5; to issue relevant share certificates in respect of the said shares; to release dividend and other benefits accrued thereon, be credited and cost thereof. The facts in brief 2. Respondent No. 1 company is a listed company. The petitioner is an individual who purchased 700 equity shares of respondent No. 1 company in the year 1997 from a broker, i.e., M/s. Rusody Securities Ltd., who is a leading member of the National Stock Exchange of India. Out of 700 equity shares worth Rs. 10 each, respondent No. 1 company returned 400 equity shares because of bad delivery. Then the petitioner filed a writ petition bearing No. 2098 of 1998 before the Honourable High Court of Calcutta against the National Stock Exchange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tificates were in demat form in the market, thereby unless and until the court order was obtained, the company could not transfer the shares as sought by the petitioner. The company further stated that all unclaimed dividend will be dealt with in accordance with the provisions of the Act, as such, no dividend shall bear interest as against the company. Since the bank accounts maintained for disbursement of dividend 100 per cent free-funded current accounts, no interest or any other income is earned by the company from the unclaimed account lying with the company. The company held the dividend entitlement on the concerned 300 shares in abeyance. The company also mentioned that section 206A of the Companies Act, 1956, does not apply, where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany is under obligation to pay interest over the dividend accrued upon the disputed shares as because the company failed to effect the transfer of shares as sought by him. 8. To which, the professional appearing on behalf of the first respondent submitted that article 124 of the company laid down that no dividend shall bear interest against the company, hence the company is under no obligation to pay interest over the dividend kept in the special dividend account. In view of the introduction of the Depositories Act, 1996 and consequential changes made in the Companies Act, 1956, the professional argued that section 206A of the Companies Act, 1956, has become redundant in respect of transfers under the depository mode. The professional fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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