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2020 (2) TMI 1375 - Tri - Companies LawTransmission of shares - Sections 58 & 241 of the Companies Act, 2013 - HELD THAT:- It is true, that the shares of the Company is under the control of Board of Directors of the Company. However, the Board of Directors of the Company cannot exercise their powers in an arbitrary manner, especially, in the instant case, where the identity and legal authority of Petitioners are admittedly (except raising un-tenable grounds) not in dispute as they are not strangers to the Company. In the instant case, it is not in dispute that late Mr. Mondal was holding 5000 equity shares in R-1 Company and he died intestat.e. The Petitioners are wife and Daughter of Mr. Mondal respectively and they are deemed to be natural heirs of Mr. Mondal. It would be unfair on the part of R-1 Company to put Petitioners forcing them to approach the Tribunal. The Petitioners have produced the requisite documents required for transmission of shares in question. And the Respondents are estopped from raising un-tenable objections, after the petitioners producing requisite documents as asked by them. It is not the case of the Respondent that any rival is received in respect of impugned transmission of shares. Normally succession certificate is required to be produced when such succession is in dispute and not supported by relevant evidence. In order to avoid any further litigation on the issue, the Petitioner also sought permission from the Tribunal to cause paper notification in English Newspaper "The Hindu" and in Kannada Newspaper "Udayavani". The contentions of the Respondent that the instant Petition is premature as there is no rejection of claim of the Petitioners is without basis. The Petitioners time and again requesting the Company to effect transmission of shares in question by producing all requisite documents as mentioned supra. The other objections raised by the Respondents, for rejecting the case of Petitioners, are baseless and liable to be rejected and thus hereby rejected. Petitioners are entitled for transmission of shares of Mr. Mondal for 5000 equity shares of R-1 Company, basing on the documents already submitted - Application allowed.
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