K.K.Balu, - (1.) THIS company petition has been filed under Section 111A of the Companies Act, 1956 ("the Act"), seeking directions against Prajay Engineers Syndicate Ltd. ("the company"), the company's registrar and share transfer agents and another (a) to rectify the register of members in respect of 5,100 equity shares, bearing certificates Nos. 58263-58267, 58278-58282, 57395-57434 and 57985; (b) to direct issuing rights and bonus shares, dividend and other benefits thereon, with effect from October 7, 1996; (c) to pass a decree for damages for Rs. 13 lakhs together with interest at 18 per cent, per annum in favour of the petitioner; and (d) costs of the petitioner.
(2.) The petitioner, as claimed in the company petition, had purchased the impugned shares in October, 1996, from the third respondent and lodged the original share certificates together with the share transfer forms, with the second respondent, being the registrar and share transfer agents, in response to which the latter by a communication dated March 1, 2007, appraised of the status quo order obtained by the third respondent in O.S. No. 65 of 2007 before the city civil court, Hyderabad and expressed its inability in registering the transfer of impugned shares in favour of the petitioner. The petitioner having lawfully purchased the shares, is the rightful owner and therefore, claims reliefs, as prayed in the company petition. According to respondents Nos. 1 and 2, the transfer of shares in favour of the petitioner could not be effected, in view of an order of injunction obtained by the third respondent in I.A. No. 667 of 2007 in O.S. No. 65 of 2007, against the petitioner and respondents Nos. 1 and 2. The suit is still pending for final disposal.
(3.) THE third respondent claims lawful rights over the disputed shares, which were lost by him, leading to the lodgement of a police complaint. This respondent has filed O.S. No. 65 of 2007 against the petitioner for declaration of title and mandatory injunction, which is pending adjudication and the petitioner being the only defendant, is contesting the suit. Both parties to the suit have been directed to maintain status quo and hence, the Company Law Board has no jurisdiction to try the claim of the petitioner and is liable to be rejected.;