KARNATAKA THEATRES LTD Vs. S VENKATESAN

JUDGEMENT

(1.) Sri B. V. Acharya for the petitioners and Shri A. C. Yadurayagowda for the respondent submitted that the matter itself may be heard finally on merits. Accordingly, final arguments on the merits of the petition are heard and it is disposed of.

(2.) This is a petition by accused Nos. 1 and 3 to 10 against the order issuing process against them for the offence under section 111(2) read with section 629-A of the Companies Act, 1956.

(3.) According to the complainant, he is a shareholder of the accused No. 1 company and he was holding 46 shares. Sri Sriramulu Naidu and his wife, Smt.Rupalatha Naidu, who were also the shareholder of the accused No. 1 company and who were holding 50 shares under Certificate No, 514, sold their shares to the complainant on September 12, 1985. On the same day, the complainant sent a letter to the company for transfer. This was acknowledged by accused No. 2. The transferors. Sri C. B. Sriramulu Naidu and Smt. Rupalatha Naidu, also wrote to A-1 on the same day to register the transfer of the shares. The board of directors did not intimate to the complainant that they were not inclined to register the transferred shares in the name of the complainant. This was not done within two months. Hence, the offence under section 111(2) read with section 629-A.