TMI Blog2001 (6) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... u, Member For the Appellant/Petitioner/Plaintiff: Shankaranarayanan, Adv. For the Respondents/Defendant: S. Ravi and Krishna Srinivasan, Advs. ORDER Balasubramanian, Vice-Chairman 1. In this petition filed under section 111(4) of the Companies Act, 1956 ('the Act'), the petitioners have challenged registration of the transfer of 2000 shares by Shoe Specialities (P.) Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal share certificates were in the custody of Shri M.D. Chhabria, the company could not have issued duplicate certificate without following the established procedure and that transfer of the shares was not in accordance with the provisions of articles. 3. The respondents have filed a reply. According to them, the duplicate shares were issued at the request of the second respondent and no newsp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... why the second respondent sought for the duplicate certificates and whether the board of directors of the company had satisfied itself that either the original certificates had been lost or destroyed as provided in rule 4(3) of the Companies (Issue of Share Certificates) Rules, 1960. Therefore, the issue of duplicate certificates itself was invalid, especially when the original share certificates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whom the board of directors may agree' would apply only after the shares had been offered at the first instance to the existing shareholders. Since in a private limited company the transfer of shares has to be in accordance with the articles as provided under section 82 of the Act and since the transfer of shares impugned in the petition is in violation of the provisions of article 6. w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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