TMI Blog2019 (9) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... tances, we hold that the delay commenced with effect from 19.08.2016 only. It is the settled principle of law that while applying the provisions of the 1963 Act, more so for condonation of delay in filing appeal, justice would be done when the matter is fought on merits and in accordance with law rather than dispose it off on technicalities and that too at the threshold. In this view of the matter and in the circumstances and for the reasons mentioned by the applicant, the delay deserves to be condoned - Delay condoned - application allowed. - CA No. 67 of 2017 In Diary No.1991 - - - Dated:- 23-9-2019 - Hon ble Mr. Ajay Kumar Vatsavayi, Member (Judicial) Hon ble Mr. Pradeep R.Sethi, Member (Technical) Mr. Animesh Shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as no response from the respondent-company, the applicant vide letter dated 11.10.2014, again requested for transfer of the shares in its name. After much delay, the respondent-company, vide its letter dated 10.06.2015 advised to submit new Form No.SH-4. The respondent-company again on 11.01.2016 advised the applicant to send the correct share transfer form so that they could register the transfer in the applicant s name and they have also assured that on receipt of correct transfer share form, they will transfer the shares at the earliest. Accordingly, the applicant sent the correct form, vide letter dated 14.07.2016. However, the respondent-company, vide letter dated 19.08.2016 rejected the request of the applicant for transfer of shares, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation, the request for transfer of 1,00,000 equity shares held in the name of Unit Trust of India A/c Vecaus-I, in favour of Amrex Marketing Private Limited would amount to violation of the Articles of Association and thus, the same is not permissible without compliance of the relevant provisions of the Articles of Association. 5. In view of the above, the aforesaid request for transfer of shares was duly considered by the Board of Directors of Akal Spring Limited ( Company ) and the same was refused. The decision of the Board of Directors, is thus being communicated to you by way of the present letter and the original Securities transfer form; Original Share certificates (4 in nos); Memorandum Articles of Association of Amrex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bly failed to satisfy the requirements for the same, since there was no explanation for each days delay and the delay was not bona fide and that there were no valid reasons to condone the delay in the instant case. 8. Before adverting to the rival submissions, the relevant provisions of the law are to be noted. The relevant Sections of 2013 Act, are reproduced hereinbelow:- 58. Refusal of registration and appeal against refusal. (1) If a private company limited by shares refuses, whether in pursuance of any power of the company under its articles or otherwise, to register the transfer of, or the transmission by operation of law of the right to, any securities or interest of a member in the company, it shall wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... smission, appeal to the Tribunal. (5) The Tribunal, while dealing with an appeal made under sub-section (3) or sub-section (4), may, after hearing the parties, either dismiss the appeal, or by order- (a) direct that the transfer or transmission shall be registered by the company and the company shall comply with such order within a period of ten days of the receipt of the order; or (b) direct rectification of the register and also direct the company to pay damages, if any, sustained by any party aggrieved. (6) If a person contravenes the order of the Tribunal under this section, he shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to three year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her than dispose it off on technicalities and that too at the threshold. In this view of the matter and in the circumstances and for the reasons mentioned by the applicant, the delay deserves to be condoned. 12. The Hon ble High Court of Calcutta in the decisions on which the learned counsel for the applicant placed reliance held that the Company Law Board, under the Companies Act, 1956, was well within its jurisdiction to entertain the appeal beyond the time limit prescribed under Section 58(4) of the 1956 Act and that the delay, if any, can be condoned if valid reasons are shown for the same. 13. It is relevant to state here that the decision of the Hon ble High Court of Calcutta in M/s Mackintosh Burn Limited (Supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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