( 1 ) THIS appeal has been preferred under section 10f of the Companies Act, 1956 (referred to as the Act) from an order dated 31st July, 1998 passed by the Company Law Board dismissing the application of the appellants under section 111 of the Act for rectification of the share register of Basubani Pvt. Ltd. (referred to as the Company ).

( 2 ) THE facts in the background of which the application under section 111 was made are as follows :-

( 3 ) THE appellants are the daughters of one Satya Bhusan Bose. Satya Bhusan took a premises on lease in 1945. He built a cinema house on the premises by the name of Basushree Cinema. He took a loan from the Union Bank for this purpose. In 1947 Satya Bhusan and three of his brothers Shanti Bhusan, Kanti Bhusan and Phani Bhusan promoted a company by the name of Basubani Private Limited (referred to as the company) to manage the Cinema.

( 4 ) THE company was incorporated on 10th December, 1947 with an authorized share capital of 500 shares of which 175 shares were subscribed in the following manner:satya Bhusan 100 sharesshanti Bhusan 25 shareskanti Bhusan 25 sharesphani Bhusan 25 shares

( 5 ) A return was filed with Registrar of C