TMI Blog2001 (9) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner in two lots of 4,000 and 1,100 on 14 October, 1999, and on 1/2 November, 1999, respectively. By letters dated 12 November, 1999, and 29 November, 1999, the company intimated the petitioner that the shares/debentures operations committee of the Board of directors of the company in the meeting held on 29 October, 1999, had rejected registration of the transfer of the said 5,100 shares in favour of the petitioner. The reasons for rejection intimated to the petitioner, are as follows: (i) This investment could not be considered to have been made bona fide with the intention of making profits. (ii) You are or direct competitors, and rivals in business. (iii) You have been motivated by ulterior factors and considerations. (iv) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany is a public company whose shares are listed, and hence, freely transferable. 4. Learned counsel on behalf of the petitioner has relied on the decisions reported in Estate Investment Co.(P) Ltd. v. Siltap Chemicals Ltd. (1999) 1 Comp LJ 314 (CLB) : 96 Comp Cas 217 (CLB) ; Bakhtawar Construction Co. Pvt. Ltd. v. Blossom Industries Ltd. (2000) 1 Comp LJ 118: (2000) 99 Comp Cas 44 (CLB). In Estate Investment Co. (P) Ltd. v. Siltap Chemicals Ltd., supra, the Company Law Board had held that the term 'sufficient cause' as used in the proviso to Sub-section (2) of Section 111A has to be seen with reference to the grounds specified in Sub-section (3) which relates to post-registration issues. In the case of post-registration, the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.Reliance has bee placed on the judgment reported in Tractar Investment Co. (P) Ltd. v. Gordon Woodroffe Ltd. (1996) 1 Comp LJ 462 (CLB) : (1996) 87 Comp Cas 941 and Shoe Specialities (P) Ltd. v. Tracstar Investment Ltd. (1996) 5 Comp LJ 502 (Mad): (1997) 88 Comp Cas 471 (Mad), on behalf of the company. 7. It was argued on behalf of the company that the expression 'or any other law for the time being in force' in Section 111A of the Companies Act, 1956, includes case laws in addition to statutes. Referring to the judgment cited, he contended that the refusal to register could be justified on the basis of the case laws. Apart from the fact that no authority has been cited on behalf of the company that the grounds for refusal b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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