TMI Blog1998 (2) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... lakh to the promoters of the company. The trial court has held that in view of the provisions of section 111 of the Companies Act, 1956 ('the Act'), the civil court has no jurisdiction to entertain the suit. 2. The learned counsel appearing for the appellant submits that the trial court has committed a grave error in holding that the provisions of section 111 are applicable in the present case. He points out that the respondent-company is a limited company. He further points out that because of the provisions of sub-section (14) of section 111, application of section 111 is restricted only to the private limited companies including those which became public limited companies by virtue of section 43A of the Act. In the submission of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he public limited companies would be available under section 111 A. The learned counsel submits that the word 'transfer' would also include allotment of shares and, therefore, the plaintiff has a right of an appeal before the CLB under section 111 A. 4. Now it is clear firstly that before the trial court though section 111 was amended in 1995, both the parties proceeded on the assumption that section 111 applies to the respondent company. That was obviously wrong. It is absolutely clear from the provisions of sub-section (14) of section 111 that with effect from 20-9-1995 the application of section 111 is restricted only to the private companies and, therefore, it will not apply in case of the respondent company. 5. It is to be seen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4). However, while enacting sections 111A in relation to the public limited companies, the Legislature restricted the right of appeal only in case of transfer of shares and the wider right of appeal which was provided by Sub-section (4) was not enacted in section 111A. When the Legislature, which is aware of the existing position, makes a conscious departure of such a nature, in my opinion, there would be no room to infer that the right of appeal provided by sub-section (4) of section 111 is to be read in consonance with sub-sections (2) and (3) of section 111A by equating transfer of shares with the allotment of shares. It is, thus, clear that there is no right of appeal provided by section 111A in relation to the public limited companies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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