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TMI Blog2012 (4) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the petitioner is the legal heir of late Mrs. Asha Jhaveri wife of Shri Dhanraj Jhaveri who held 150 fully paid equity shares of Rs. 100 each in the company under folio No. 7. The petitioner wrote a letter dated February 17, 2010 addressed to respondent No. 2 requesting for transmission of shares held by his late mother in his favour. But he did not receive any reply. The petitioner again sent another letter dated July 12, 2010, addressed to respondent No. 1 at its registered office by registered post. This letter was returned undelivered. Hence petitioner sent another letter to respondent No. 1 at its correspondence address at 8/1278 Mali Falia, Gopipura, Surat-395 001. Respondent No. 1 by its letter dated September 24, 2010 ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribes that a company may transmit the equity shares to the legal heirs of a deceased member upon receipt of intimation along with the death certificate of the member, will or letter of administration and request from the legal heir. 4. He further submitted that it is settled law that the board of directors of the company even should not make any roving enquiry. The company is bound to register transmission. In this case too the matter does not seem to have been placed before the board of director's meeting or even attempted to be discussed. The refusal is not bona fide but calculated to retain the control over the company by the directors as this would be almost 6.81 per cent. shareholding out of the total 2,200 equity shares of Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw the petition. It is a contempt of this Bench. When the petitioner does not have locus standi, there is no valid petition in the eyes of law. By continuing with the petition without any locus standi, the petitioner has abused the process of law. As admitted by the petitioner himself in his rejoinder dated March 19, 2011, the Deputy Administrator General, Surat has been empowered to grant certificate, is the designated authority under the Act to decide the legal heir for the property of the deceased below specified value of Rs. 2 lakhs. When the said authority has cancelled the certificate, the issue of deciding the legal heir is still pending and hence respondent No. 1 cannot effect any transmission of shares. Respondent No. 1 being a sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by a competent authority designated for this purpose. Since in the present case no such certificate is in existence, respondent No. 1 is fully justified in refusing the transmission. The present petition is filed only to harass the respondents and to circumvent the legal procedure. Therefore, this petition should be dismissed with costs. 7. Heard the learned practising company secretary for the petitioner none appeared for the respondents. This Bench vide its Order dated April 21, 2011 made it clear that in view of the complicated issues involved and to afford an opportunity to the respondents to be heard either in person or through their representatives, the matter was posted on August 4, 2011 at 2.30 p.m. On that day the authorised r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal heir of deceased shareholder, i.e., Mrs. Asha Jhaveri. The company vide letter dated September 24, 2010 addressed to the petitioner stating that the application which was received by the company was perused and found unacceptable as it was not supported by the required documents. The petitioner in his affidavit stated that he submitted the letters for transmission of shares in his name along with the certificate of succession issued by the competent authority, i.e., Deputy Administrator General, Surat Region, Surat. The petitioner also enclosed photocopy of the Certificate No. 18 of 2010 dated July 8, 2010 issued by the Deputy Administrator General, Surat Region, Surat under the provisions of section 29 of the Administrator's General ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the articles, it is seen that provision is made in the articles of the company with regard to the transmission of shares. The articles of the company are binding on all the shareholders and members. As per the said article on the death of any shareholder his shares shall be transmitted to any person as mentioned by the deceased shareholder in his will. In case of failure of the deceased to mention anybody's name in his will or in case no will is prepared, shares will be transferred to the legal heirs. In the present case, there is no will executed by the deceased shareholder. However, the petitioner claims to be the legal heir on the basis of the certificate issued by the Deputy Administrator General. The said certificate has been restrain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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