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C. HARI SHANKAR
Reserve Bank of India – Appellant
Versus
Crb Capital Markets Ltd. (Provn. Liqn. )P. Ltd. – Respondent
JUDGMENT
CO.APPL.782/2006 [By Murari Lal Saraf]
1. Viewed from the point of view of dispensation of speedy justice, this case presents a somewhat sorry picture.
2. This application was preferred by the applicant 17 years ago. The applicant claims to have purchased 1500 equity shares of Reliance Industries Ltd (RIL) from the open market on 25 April 1997. Aggrieved at the fact that the shares were not being transferred in the applicant's name, purportedly owing to certain orders passed by this Court, the present application was filed in 2006. We are now towards the end of 2023, and the application continues to languish undecided.
Facts
3. Chronologically, it is necessary, before adverting to the purchase of RIL equity shares by the applicant, to refer to a communication, dated 9 April 1997, from the Reserve Bank of India (RBI) to CRB Capital Markets Ltd ("CRBCML", hereinafter), in which the following proscription found place:
"5. Further, the Reserve Bank of India on being satisfied that it is necessary so to do in the public interest, hereby directs your company in accordance with the provisions of section 45 MB (2) of the Reserve Bank of India Act, 1934 not to sell, transfer, creat
The court upheld the entitlement of the applicants to transfer the shares purchased in the open market, originally held by CRBCML, despite the proscriptions by the RBI and the court order.
The main legal point established is that the defendants were allowed to transfer their shareholding in defendant no.2, as their purchase of shares was not illegal, and there was no order restraining ....
Private company share transfer invalid without complying with articles' pre-emptive rights and board approval; discrepancies in transfer documents and lack of company records defeat rectification cla....
The tribunal confirmed that share transfers can occur during liquidation if bona fide and not prejudicial, supporting regulatory compliance under SEBI rules.
The central legal point established in the judgment is the mandatory nature of the provisions under the Companies Act related to transfer and transmission of shares, and their influence on determinin....
The court affirmed that claimants can seek share transfer rectification under Companies Act provisions despite objections about membership status.
The legitimacy of share transfers and directorship must comply with the company's Articles of Association, and findings lacking evidence can be deemed legally erroneous.
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