Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2013: s. 58 Companies Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Companies Act, 2013 (18 of 2013) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Case Disposed Off |
Headnote | Companies Act, 2013: s. 58 – Refusal of registration andappeal against refusal – Held: Under s. 58(2), the securities orinterest of any member in a public company are freely transferable– However, u/s.58(4), it is open to the public company to refuseregistration of the transfer of the securities for a sufficient cause –To that extent, s. 58 (4) has to be read as a limited restriction on thefree transfer permitted u/s. 58(2) – Right to refuse registration oftransfer on sufficient cause is a question of law and whether thecause shown for refusal is sufficient or not in a given case, can bea mixed question of law and fact – On facts, since no orders werepassed on registration of shares, respondent approached Companylaw Board, which directed registration – Appellant having takenspecific grounds in the appeal and having raised questions of lawregarding its right to refuse registration of transfer on sufficientground, being a statutory appeal u/s. 10F, the High Court shouldhave considered the same among other questions of law –Company Law Board, was of the view that the refusal to register thetransfer of shares can be permitted only if the transfer is otherwiseillegal or impermissible under any law – Going by the expression“without sufficient cause” used in Section 58(4), said view cannotbe accepted – Refusal can be on the ground of violation of law orany other sufficient cause – Conflict of interest in a given situationcan also be a cause – Whether the same is sufficient in the factsand circumstances of a given case for refusal of registration, is forthe Company Law Board to decide since the aggrieved party is giventhe right to appeal – Submission before the Company Law Boardthat the whole transfer is deceptive and mala fide in the backgroundof the respondent company, should have been considered – In viewthereof, matter remitted to the Company Law Board for considerationafresh of the appeal filed u/s. 58. |
Judge | Hon'ble Mr. Justice Kurian Joseph |
Neutral Citation | 2018 INSC 269 |
Petitioner | Mackintosh Burn Limited |
Respondent | Sarkar And Chowdhury Enterprises Private Limited |
SCR | [2018] 3 S.C.R. 83 |
Judgement Date | 2018-03-27 |
Case Number | 3322 |
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