Home Case Index All Cases Benami Property Benami Property + HC Benami Property - 2013 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 1152 - HC - Benami PropertySuit for Declaration of Ownership of shares and Permanent Injunction restraining the defendant from dealing with the said shares transfer of shares under trust or against consideration - Benami Transaction or not - Period of limitation for initiating suit - HELD THAT:- The plaintiff has approached the Court with himself being the beneficial owner of the shares, with the shares in the name of Omkam and BGR being transferred in the name of the defendant for consideration paid by the plaintiff and on which plea it should be the plaintiff who should have been entitled to the dividend with respect to the said shares, but the plea of the plaintiff in the plaint is of the defendant having agreed to deposit the said dividend with VIL and in pursuance to the said agreement having deposited ₹ 5,50,000/- out of the dividend received of ₹ 23,97,863/- with VIL. Even if the plaintiff were to be a majority shareholder of VIL, VIL remains a distinct legal entity from its shareholders and the question of the monies owed to the shareholders being paid to the company without any satisfactory explanation therefor, and which has not been given, does not arise. Similar is the plea of the plaintiff of the loan admittedly repayable by VIL to the defendant being squared off against the balance dividend which as per the case built by the plaintiff should have been repayable by the defendant to the plaintiff. The squaring off is sought to be done with VIL paying ₹ 16,50,000/- to the defendant as against ₹ 16,02,137/- which was due. The same is also contrary to all canons of accounting practices particularly corporate accounting which is subject matter of internal and external audits. What follows from such inconsistencies is that the present suit is an abuse of the process of the Court to ward off the claim of the defendant for recovery of the balance loan amount admittedly advanced by the defendant to VIL. The present suit dismissed as not disclosing a cause of action and / or being thoroughly vexatious and frivolous and in abuse of the process of this Court. Costs of ₹ 20,000/- are also imposed on the plaintiff payable to the defendant.
|