P.C.Borooah, J. - (1.) One D. L. Sen, a shareholder of the petitioner Calcutta Landing & Shipping Co. Ltd. (hereinafter 'the company') sold 9 shares of the said Company to one Phani Bhusan Sarkar, who applied to the company for registration of the said shares and deposited the original share scrips for necessary registration. The Company did not register the transfer on the ground that the signature of the transferor on the transfer deed did not tally with the specimen signature of the transferor maintained by the Company and also because the Adhesive Stamp on the Transfer Deed was not cancelled. Phani Bhusan Sarkar preferred an appeal against the decision of the company Law Board under Section III of the Companies Act, 1956. After hearing the contention of the Company, the Company Law Board by an order dated June 18, 1979 accepted the company's contention but referred the matter to the Collector of Stamps, Calcutta for adjudication of duty, penalty etc. under the provisions of the Indian Stamp Act.
(2.) On January. 29, 1980 the company received a Notice bearing Memo No. 6 RS dated January 24, 1980 along with a copy of order dated July 17,1979 passed by the Collector of Calcutta to the effect that the Company was directed to pay a penalty of Rs. 50/- under Section 63 of the Indian Stamp Act as the Company had failed to cancel the Adhesive Stamp as required under Rule 17 of the Indian Stamp Rules, 1925 read with Government of West Bengal Notification No. 6714 AST dated 18-7-1941. A copy of the order dated July 17, 1979, which is annexed to the petition and marked with the letter 'C', is the subject matter of challenge in this Rule.
(3.) I have heard Mr. Gautam Chakra-borty, appearing on behalf of the Company and Mr. Shyamal Sen, appearing on behalf of the respondents.;