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2019 (1) TMI 1713 - Tri - Companies LawRights of petitioner as shareholder - transfer of shares - time limitation - HELD THAT:- Admittedly, there has been a lapse on the part of the Petitioners also, in agitating their grievances, but the fact is that they are in possession of the share Certificates, in original. Under no stretch of imagination can we say that the Petitioners have acquiesced their rights as shareholders of the Company, no matter whether their name is reflected in the Register of Members or not. It is a settled law that the shares are goods and when the shares certificates are physically tendered at the time of transfer, the transfer is complete, and the absence of their names in the Register of Members cannot extinguish their rights as shareholders. The law of limitation does not apply to a case where, there is a continuous cause of action and it is also to be noted that the cause of action accrues from the date of knowledge on the part of the petitioners in coming to know of the irregularity committed by the respondents. Evidently, it is only after 2016, the Registrar of Companies was informed of the irregularities committed by the respondents. No matter whether the law of limitation applies or not, the fact remains that the petitioners, not minding their earlier lapses, have come forward to enforce their rights as shareholders of the company within the time acceptable under law. In view of the prima facie case established in favour of the petitioners, the balance of convenience completely rests in favour of the petitioners and if the respondents take any steps for alienation of any assets of the company, the petitioners would be put to irreparable loss. List this matter on 25.01.2019 for inspection of records in the court for consideration of the court.
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