SUSHEELA OSTWAL Vs. SATYAM COMPUTER SERVICES LIMITED

JUDGEMENT

(1.) THIS is a petition filed under Section 113(3) of the Companies Act 1956 ('the Act') seeking directions of this Bench against M/s. Satyam Computer Services Limited ('the Company') to issue 100 Bonus shares of Rs. 10/- each or equivalent 500 shares of Rs. 2/- each; pay damages of Rs. 6,55,000 together with interest at 18% Per annum from 01.10.1999 till date of payment and permit the petitioner to initiate criminal proceedings under Section 113(2) of the Act.

(2.) The facts in brief, as reiterated by Mr. Prassan Chand Ostwal, Authorised Representative of the petitioner are that the petitioner is holder of 100 shares of Rs. 10/- each of the Company since 01.09.1999, comprised in Certificate No. 122633. Though the Company had announced bonus shares, it had not issued 100 bonus shares of Rs. 10/- each due to the petitioner. Mr. Ostwal pointed out that one Mr. K. Chandrashekar had filed a Civil suit in OS. No. 2875 of 1999 before the XII City Civil Court, Chennai for mandatory injunction directing the Company, interalia, to issue bonus share certificates in respects of the shares covered under share certificate No. 122633. The suit was dismissed on 11.10.2000, upon which, Mr. K. Chandrashekar preferred an appeal in CRP No. 590/2001 before the High Court of Madras against the said order dated 11.10.2000. The High Court dismissed the appeal preferred by Mr. K. Chandrasekar. In this connection, Shri. Ostwal has referred to the order of the City Civil Court and the correspondence exchanged among the parties. In view of dismissed of the appeal by the High Court of Madras, Shri. Ostwal prayed for directions against the Company to issue 100 bonus shares in favour of petitioner.

(3.) I have considered the pleadings and submissions made on behalf of the petitioner as well as the Company.