ALL INDIA BANK OFFICERS CONFEDERATION Vs. DHANALAKSHMI BANK LTD

JUDGEMENT

(1.) THIS is a petition filed under Section 111(4)(b) of the Companies Act, 1956, seeking direction of this Bench to the Dhanalakshmi Bank Limited to rectify the register of members of the bank in respect of 164 shares for the reasons stated in the petition.

(2.) The petitioner is a Confederation of All India Bank Officers registered under the Trade Unions Act, 1926. It had bought 164 shares of the bank from respondent No. 2 through the assistance of respondent No. 3 and lodged the certificates along with transfer forms with the bank. After seeking certain clarifications, the bank sent an intimation that the board of directors of the bank has decided to refuse the transfer on the ground that the transfer was in contravention of the provisions of the Companies Act, 1956. Since the bank had not intimated the provisions of the Act according to which the transfer is in contravention, the petitioner sought clarification on this matter and the bank had informed the petitioner that the petitioner being an organisation registered under the Trade Unions Act, 1926, is not a "person" under Section 41(2) of the Companies Act, 1956.

(3.) THE petition was heard today. Shri Rajanna, advocate, appearing for the petitioner, reiterated the pleadings in the petition and submitted that the definition of the word "person" has to be derived from Section 3(42) of the General Clauses Act, 1897, as the Companies Act has not defined the term "person". According to Section 3(42), "person" includes any company or association or body of members whether incorporated or not.