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TMI Blog2019 (1) TMI 1713X X X X Extracts X X X X X X X X Extracts X X X X ..... r, the transfer is complete, and the absence of their names in the Register of Members cannot extinguish their rights as shareholders. The law of limitation does not apply to a case where, there is a continuous cause of action and it is also to be noted that the cause of action accrues from the date of knowledge on the part of the petitioners in coming to know of the irregularity committed by the respondents. Evidently, it is only after 2016, the Registrar of Companies was informed of the irregularities committed by the respondents. No matter whether the law of limitation applies or not, the fact remains that the petitioners, not minding their earlier lapses, have come forward to enforce their rights as shareholders of the company within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssession and management of the company and it is their duty to see that whenever, the transfer of shares are effected, an appropriate entry has to be made in the Register of Members. Admittedly, there has been a lapse on the part of the Petitioners also, in agitating their grievances, but the fact is that they are in possession of the share Certificates, in original. Under no stretch of imagination can we say that the Petitioners have acquiesced their rights as shareholders of the Company, no matter whether their name is reflected in the Register of Members or not. It is a settled law that the shares are goods and when the shares certificates are physically tendered at the time of transfer, the transfer is complete, and the absence of their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtaken to produce the same in the open court only for the inspection of the Tribunal. It is not a tenable submission and the petitioner is entitled under law to have the inspection of the statutory records of the company, in view of the fact that the petitioners have, prima facie, established that they are the shareholders of the company. We are therefore convinced that the petitioner is entitled for a proper interim relief and we hereby direct that the respondents shall forthwith produce the entire statutory records of the company before the court for inspection, also by the petitioners and, if necessary the relevant copies of the same are to be produced and supplied subsequently, also to the petitioners. We hereby direct that the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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