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2015 (7) TMI 93 - Board - Companies LawAllegedly transfer of shares - Right to transfer the shares - Non compliance with section 108 of the Companies Act, 1956 - Held that:- The Hon'ble High Court categorically held that issuance of such succession certificate cannot ipso facto put Smt Thankam Paul directly in the place of the original holder and she cannot be a Member unless the shares are got registered in her name on submitting necessary application to the Board with requisite proof. The company has made it clear that they have not received any application seeking transmission of shares held by Smt (late) Rubina Paul. In absence of the same the company cannot transmit the shares. Thus it is well established that Smt Thankam Paul is not a registered shareholder of the company in respect of 74 shares. Therefore she has no legal right to transfer the shares in favour of the petitioner or any other person. The so called transfer form is invalid in the eye of law and void abinitio. Accordingly, the petitioner is not entitled to seek the relief No. 1 and the petitioner has no locus standi to maintain petition under section 111 and 111A of the Companies Act, 1956 before this Bench. It is established that the petitioner has not complied with section 108 of the Companies Act, 1956 and the company is not bound to lodge the share certificate along with the share transfer deed within a reasonable time to the company. A person seeking transfer of shares has to mandatorily comply with the provisions of the Companies Act, by submitting a proper instrument of transfer duly stamped and executed by or on behalf of the transferor and by or on behalf of the transferee along with the certificate relating to the shares and there can be no exception to this mandate prescribed under the Act. In my view the company cannot be faulted for non transfer/non registering of shares in the petitioner's name as the petitioner himself has to be blamed for his failure to comply with the relevant provision laid down under the Act for transfer and registration of shares. - Decided against the assessee.
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