GREAT VIEW PROPERTIES P. LTD. Vs. SHAKTI INSULATED WIRES P. LTD. AND ORS.

JUDGEMENT

(1.) BEING aggrieved by the refusal of respondent No. 1 company, Shakti Insulated Wires P. Ltd. (hereinafter referred to as "the respondent -company") to transfer 1,980 equity shares held by Jayalaxmi Holdings P. Ltd., of the respondent -company, to the petitioner, Great View Properties P. Ltd. (hereinafter referred to as "the petitioner -company"), the petitioner -company, has filed the present petition invoking the jurisdiction of this Bench as envisaged in section 111 of the Companies Act, 1956 (hereinafter referred to as "the Act" in short). The petitioner -company has sought limited reliefs in the form of direction to the respondent -company to transfer the impugned equity shares and register the same in the name of the petitioner -company, and direction for rectification of register of members of the petitioner -company. The relevant facts leading to filing of the present petition are as follows:

(2.) THE respondents appeared and filed their reply. In its reply, the respondents have initially challenged the maintainability of the petition and sought its dismissal on the ground that the petition is barred by law of limitation. On merits, the defence taken by the respondents is that the articles of association of the respondent -company contain a provision with regard to preemptive rights, and therefore, without complying with the said provision of the articles of association of the company, the impugned shares cannot be transferred in the name of the petitioner -company, and hence the petition deserves to be dismissed on the said ground.

(3.) BASED on the pleadings of the parties, only two short questions that arise for my consideration are as to whether the present petition is barred by law of limitation and whether the refusal by the respondent -company to transfer the 1,980 equity shares in the name of the petitioner -company is without sufficient cause?