CHAMBAL FERTILISERS AND CHEMICALS LTD Vs. KORE RANGA BABU
COMPANY LAW BOARD
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(1.) CHAMBAL Fertilisers and Chemicals Ltd., a listed company, has filed this petition under Section 111(4) of the Companies Act, 1956. The company has applied for rectification of its own register of members.
(2.) The facts of this case are that respondent No. 1 who is the registered holder of 1,900 equity shares intimated in September, 1993, about the loss of share certificates in respect of 1,000 shares. The company issued an advertisement about the loss of certificates and invited objections for issue of duplicate certificates. Thereafter, the company could trace out the certificates in respect of 500 shares and returned the same to respondent No. 1 under the impression that the certificate might have been received back undelivered. In the meanwhile respondent No. 2 lodged a complaint regarding non-receipt of certificates relating to these 500 shares after registration of transfer for which documents were stated to be lodged by him. The company was able to trace the related transfer documents also but in the meanwhile the 500 shares certificate had gone back to respondent No.1
The company, therefore, prayed for determining of the rightful owner in respect of these 500 shares and order rectification of the register of members. It is evident from the facts that the company separated the share certificates from the transfer deed and wrongly sent the certificates to the original owner. Thus respondent No. 2 as a genuine buyer has suffered a loss consequently. At the bearing held on, August 23, 1995, we asked the authorised representative of the company whether the company is willing to reimburse respondent No. 2 for the loss. On September 6, 1995, the authorised representative conveyed the, willingness of the company to compensate respondent No. 2. The authorised representative also stated that though the duplicate certificate is really the same has not been issued. Accordingly, we hereby direct the company to reimburse a sum of Rs. 12,500 immediately to respondent No. 2 and also cancel the duplicate certificate kept ready. The company shall also inform all the stock exchanges suitably.;
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