LAXMINARAYAN BHAYYA Vs. THE PRAGA TOOLS CORPORATION LTD

JUDGEMENT

(1.) THIS is an application filed under Section 38, Companies Act on behalf of Laxminarayan Bhayya, a share -holder in the Respondent Company, The Praga Tools Corporation Ltd., holding 100 shares. The Petitioner's prayer is for the rectification of the Register of share -holders maintained by the Respondent Company. The facts alleged by the Petitioner are that he purchased 100 shares of the Respondent Company in the Hyderabad Stock Exchange on 28 -7 -1948, and obtained the share scrip as also a transfer form duly filled and verified. He averred that he submitted the share scrip of the Respondent Company on 8 -12 -1948, requesting the Company to effect the transfer and enter the Petitioner's name in the Register of share -holders. He alleged that in pursuance of this request the Petitioner's name was entered in the shareholders' Register on 14 -12 -1948, and that thereafter he was in receipt of the balance sheet and the profit and loss accounts from the Company as a share holder would do. His grievance is that the share scrip that was lodged with the Company for the purpose of effecting the transfer was not returned to him after recording the transfer, although he repeatedly asked the Company to send the same.

(2.) WE heard the arguments of the respective counsel. The various processes through which the shares passed and the steps that were taken at the Respondent Company and at the Stock Exchange are matters which require a detailed and thorough investigation and we are of opinion that the proceedings before us being in the nature of summary proceedings, there is no warrant for us to go into a detailed investigation into the matters alleged by one party and denied by the other. It was argued by the learned Vakil for the Petitioner that in this case the Company is estopped by reason of its having entered the name of the Petitioner in the Register of: share -holders; and it was not open to the Company to cancel the same subsequently. As observed by us above whether really the original transfer deed was a faked one or it bore a forged signature are matters pre -eminently lit for an enquiry in a regular suit.