CA No. 33(111A)/ERB/2007 & CP No. 481(111A)/ERB/2007. Case: Smc Share Brokers Ltd. Vs ITC Ltd.. Company Law Board

Case NumberCA No. 33(111A)/ERB/2007 & CP No. 481(111A)/ERB/2007
JudgesB.S.V. Prakash Kumar, Member (Judicial)
IssueCompanies Act, 1956 - Section 111A
Citation2012 (106) CLA 397, 2012 (173) CompCas 350 (CLB), 2012 (114) SCL 246 (CLB)
Judgement DateSeptember 02, 2011
CourtCompany Law Board


B.S.V. Prakash Kumar, Member (Judicial), (Kolkata Bench)

  1. The petitioner herein moved this petition under section 111A of the Companies Act, 1956 ('the Act') seeking directions against the respondent-company and other respondents for rectification of share register for the disputed 200 shares of R-1-company, The petitioner is a company floated for carrying sale and purchase of different kind of shares and securities on various stock exchanges in India. In pursuance of it, the petitioner-company purchased 200 shares of R-1-company of face value of Rs. 10 each (now 2000 shares of face value of Re. 1 each, as the face value of shares of R-1-company is reduced from Rs. 10 to Re. 1 each) of R-1-company through R-2, J S Shany & Co., a share broker, vide share certificate Nos. 1216215 and 1216216 bearing distinctive Nos. 130558868 - 967 and 130558968-9067, respectively for Rs. 59,200 at the rate of Rs. 296 per share vide bill No. 3488 dated 26th October, 1995 (Annexure 3) duly issued by R-2 in favour of the petitioner. The case of the petitioner is that the petitioner-company lost the above share certificates in transit on 12th November, 1995. Since the petitioner lost the share certificates, it wrote a letter dated 14th November, 1995 (Annexure 4) to R-1-company along with a photocopy of first information report ('FIR') lodged by the petitioner in the nearby police station requesting R-1-company not to transfer the said shares to any one in case anybody approaches for the transfer of the same. Responding to the same, R-1-company informed the petitioner on 5th January, 1996 (Annexure 5) that R-1-company has received the share transfer deed duly executed by R-3 in favour of R-4 of share certificate No. 1216215 of 100 shares bearing distinctive No. 130558868 - 967 and further stated that R-1 would transfer the same in favour of R-4 in case the petitioner fails to produce the stay order from court of law from transferring the same. The petitioner wrote another letter dated 3rd February, 1996 (Annexure 6) to R-1 requesting that the petitioner would send the indemnity bond to R-1 for issuing of duplicate share certificates in favour of the petitioner. Subsequent to this, the petitioner on 27th February, 1996 wrote another letter (Annexure 7) to provide details of both the buyer and seller of those shares in dispute. To which, R-1 on 8th March, 1996 wrote a letter (Annexure 8) informing the petitioner that R-1-company registered 100 shares...

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