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2013 (9) TMI 941 - HC - Companies LawValidity of CLB Order - public limited company or private limited company - allotment of shares - Two conclusions can be drawn from the above discussion. The first is that there is a clear violation of Section 108 of the Act. HQR did not have the share certificates along with the duly executed share transfer forms when a decision was taken at the Board meeting held on 10th May, 2005 to approve the transfer of shares from Moral to Mr. R.P. Mittal. The said decision therefore is invalid. The second conclusions that Mr. R.P. Mittal has, prima facie, made a false statement in his affidavit dated 5th March, 2013 and counter affidavit dated 30th April, 2013 before this Court that the share certificates pledged with IOB were returned to him on 23rd June, 2003. This Court is, therefore, inclined to institute suo motu proceedings under Section 340 of the Code of Criminal Procedure, 1973 ('CrPC') against Mr. R.P. Mittal for making a false statement before the Court on affidavit. Allotment/transfer of share - Voting rights not given - Held that:- independent of the prima facie finding of the Supreme Court that HQR is not a private but a public limited company, the Court finds that the impugned order dated 31st January 2006 of the CLB cannot be sustained in law. Pursuant to the orders of the DB as confirmed by the Supreme Court, the management of HQR is presently with the appellants in Co. Appeal (SB) No. 4 of 2006. They are also presently the majority shareholders. In light of the changed circumstances, the Court directs that status quo will be maintained as regards the BoD as well as the shareholding of HQR till such time the suits concerning the status of HQR as a private or public limited company are finally decided. The parties are, however, at liberty to seek any variation or modification of this direction from the court in which the suits are pending.
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