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2010 (2) TMI 584 - HIGH COURT OF MADRASRectification of the register of members of the company by deleting the name of the second appellant herein as owner of 101 equity shares of the company and entering the respondent's name as the holder of the impugned shares - Held that:- The case of the appellants is not one falling under the second proviso to section 108 of the Act, viz., transmission by operation of law. Section 108(1) of the Act does not speak of any execution by the company, the transfer has to be by a shareholder through an instrument of transfer duly stamped and executed by or on behalf of the transferor or the transferee and delivered to the company. In the absence of anything shown that there was a transfer in terms of section 108 of the Act, rightly, the Company Law Board allowed the petition. In these circumstances, no substantial question of law to interfere with the findings of the Company Law Board. In the light of the said fact that the respondent had the knowledge as to the transfer only in the year 2002 and the company petition thus preferred within a period of three years, the view of the Company Law Board that the action was well within the limitation, hence, merits to be accepted. In the circumstances, the order of the Company Law Board stands confirmed and this company appeal stands dismissed. No costs.
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