Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract Securities |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | SECURITIES CONTRACTS (REGISTRATION) ACT, 1956: s. 13 - Contract in notified areas illegal in certain circumstances - Transfer of shares of Peerless General Finance and Investment Company (Peerless) - Held: In the instant case, the place where the contract for sale of shares in question has been entered is a notified area for the purpose of s. 13 -- Further, the contract is not between the members of a recognized stock exchange and, therefore, as held by the Company Law Board, is in violation of s. 13. s. 2(h)(i) - 'Securities' - 'Shares of Pearless General Finance and Investment Company - Held: For shares of a public limited company to come within the definition of securities they have to satisfy that they are marketable - 'Marketability' requires free transferability -- Subject to certain limited statutory restrictions, the shareholders possess the right to transfer their shares, when and to whom they desire - - It -is this right which satisfies the requirement of free transferability - Shares of public limited company though not listed in stock exchange, come within the definition of 'securities' and, therefore, provisions of the Act would apply including the indictments contained in s. 13 thereof. ss. 2(i) and 16 - 'Spot delivery contract' - Explained -Shares of Peerless transferred - Part of consideration passed more than 6 years after the transfer - Held: The transaction does not come within the expression 'spot delivery contract' as defined in s.2(i) and, as such is, in violation of s.16 and Notification dated 27.6.1969 - Central Government Notification dated 27. 6. 1969. |
Judge | Hon'ble Mr. Justice C.K. Prasad |
Neutral Citation | 2013 INSC 463 |
Petitioner | Bhagwati Developers Pvt. Ltd. |
Respondent | Peerless General Finance & Investment Company Ltd And Anr. |
SCR | [2013] 7 S.C.R. 547 |
Judgement Date | 2013-07-15 |
Case Number | 7445 |
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