MANNALAL KHETAN Vs. KEDAR NATH KHETAM

JUDGEMENT

(1.) These four appeals by certificate raise two questions. First, whether the provisions of Section 108 of the Companies Act, 1956 are mandatory in regard to transfer of shares. Second, can a company having been served with notice of attachment of shares register transfer of shares in contravention of the order of attachment.

(2.) The appellant Mannalal Khetan and the respondents Kedar Nath Khetan and Durga Prasad Khetan are members belonging to two branches of the Khetan Family. The respondent Lakshmi Devi Sugar Mills Private Ltd. is a private company. It was incorporated on 7th April 1934 under the Indian Companies Act, 1913.

(3.) The Khetan family held shares in the respondent company and in two other companies Maheshwari Khetan Sugar Mills Private Ltd. The shares stood in the names of (1) M/s. Ganeshnarayan Onkarmal Khetan. (2) M/s. Sagarmal Hariram Khetan, (3) Sri Mannalal Khetan and (4) Sri Radhakrishna Khetan.