S SIVAKUMAR Vs. CIRLACS DATA SYSTEMS LTD

JUDGEMENT

(1.) IN this petition filed under Section 111A of the Companies Act, 1956 ('the Act'), the petitioner has sought for rectification of the register of members of Cirlac Data Systems Ltd. in respect of 40,000 shares said to be illegally transferred in the name of the second respondent.

(2.) According to the petitioner, he was allotted 40,000 shares in the company of Rs. 10 each sometime in 1995 and no share certificates had been issued to him. However, it had come to his knowledge that his name in respect of these 40,000 shares had been deleted from the register of members and the name of the second respondent had been entered therein. According to the petitioner, he never executed any transfer instrument nor he had received any consideration for the same. Since the share certificates had not been issued, the managing director of the company Shri V.N. Mohan, being the brother of the second respondent who is also a director of the company had manoeuvred to alter the register of members perhaps by execution of forged transfer deeds as if signed by the petitioner. Therefore, the petitioner has sought for rectification of register of members to enter his name in respect of these 40,000 shares.

(3.) DURING the pendency of the proceeding, the petitioner has filed a criminal case against the second respondent and also the managing director of the company alleging that they had forged the signature of the petitioner in the transfer instruments and the criminal case is pending.