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2018 (12) TMI 1374 - AT - Companies LawTribunal's jurisdiction to direct the Respondents (Appellants) to sell its shares to the company and the Company to buy back the shares of the Respondents (Appellants) - Held that:- From sub-section (4) of Section 59, it is clear that where the transfer of securities is in contravention of any of the provisions of the ‘Securities Contracts (Regulation) Act, 1956’, the ‘Securities and Exchange Board of India Act, 1992’ or the ‘Companies Act, 2013’ or any other law for the time being in force, the Tribunal can direct the company or a depository to set right the contravention and rectify its register or records concerned. The Tribunal has failed to notice that the petition having filed under Section 111A of the Companies Act, 1956, on transfer was required to deal with the Petitioner in terms of sub-section (4) of Section 59 of the Companies Act, 2013. For the said reason, we hold that the Tribunal exceeded its jurisdiction by annulling the shares and by directing the Respondents (Appellants) to transfer the shares to the Company. If there is contravention of any of the provisions of the Securities Contracts (Regulation) Act, 1956, the ‘Securities and Exchange Board of India Act, 1992’ or the Companies Act, 2013 or any other law for the time being in force, the Tribunal could have directed the company or a depository to set right the contravention and rectify its register or records concerned. The impugned judgment dated 5th July, 2017 cannot be upheld and the same is accordingly set aside.
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