Decided on October 18,1995



- (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 reported loss of two share certificates, viz., certificates Nos. 141334 and 141335 in respect of 200 shares purchased through a share broker. The original owner of these 200 shares is one Sh. T.K. Lingaiah. As instructed respondent No. 1 executed an indemnity bond and affidavit for issuance of duplicate share certificate in May, 1994. In June, 1994, the company issued duplicate certificate to respondent No. 1. In the meantime, the original share certificate No. 141335 in respect of 100 shares out of the above 200 shares was received from respondent No. 2 with the relevant transfer documents and the same was registered and sent to respondent No. 2. Subsequently, the other share certificate for 100 shares, namely, certificate No. 141334 was also received from respondent No. 3 along with the relevant transfer documents for transfer in his name. However, the transfer in respect of respondent No. 3 has not yet been made and the original certificate in respect of these shares have not yet been despatched. The respondents were informed of the facts of the case by the company, but the letter sent to respondent No. 2 has come back undelivered. On August 23, 1995, after going through the contents of the petition, the company was told that both the original and duplicate certificates in respect of 200 shares have come into existence exclusively due to the fault on the part of the company. The authorised representative of the company was directed to refer back to the management whether the company is prepared to reimburse the cost of the shares to respondents Nos. 2 and 3 who have acquired the shares from the market. On September 6, 1995, the authorised representative of the company conveyed the willingness of the company to reimburse the cost to the respondents.
(3.) IN view of the above, it is hereby ordered that the company shall reimburse immediately Rs. 2,800 and Rs. 2,400 being the purchase consideration as mentioned in the transfer deed to respondents Nos. 2 and 3 respectively. The payment to respondent No. 2, however, will be made immediately on his surrendering original certificate No. 141335 which shall be cancelled. The other original certificate No. 141334 stated to be in the possession of the company will be cancelled. Accordingly, the company will rectify the register of members by removing the names of respondents Nos. 2 and 3. The company shall inform all the concerned A stock exchanges suitably. Ordered accordingly.;

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.