SOURABH H BORA Vs. RAASI CEMENT LTD

JUDGEMENT

(1.) THE main complaint of the petitioner in this petition filed under Section 111 of the Companies Act, 1956 ('the Act') and suo motu considered under Section 111A is that Raasi Cement Ltd. ('the company') had failed to register 2,000 shares lodged for registration of transfer some time in November, 1997.

(2.) According to the petitioner, he had purchased 71,500 shares of the company for valuable consideration of which he lodged 2,000 shares for registration in November, 1997. Originally all these 71,500 shares were held in the name of the second and third respondents. According to the company, there were various proceedings pending between the parties in the Civil Court and, therefore, the company did not register the transfer of 2,000 shares. The cement division of the company has been taken over by India Cements in terms of sanction of scheme under Section 391(2) of the Act by the Andhra Pradesh High Court. India Cements Ltd. were to acquire the shares of the company at a price of Rs. 300 per share. In view of the disputes between the parties in respect of 71,500 shares, these shares were not acquired by India Cements Ltd.

(3.) IN the light of the compromise arrived at among the parties and recorded before the Civil Court, we order that the first respondent-company will register 41,500 shares in the name of the petitioner on lodgement of proper instruments of transfer and INdia Cements Ltd. will purchase these shares from the petitioner and the balance 25,000 shares from the third respondent and 5,000 shares from the second respondent, thus, totalling to 71,500 shares at Rs. 300 per share. The amount of consideration towards these 71,500 shares will be paid within two months from the date of this order.