KORAPALU S SHETTY Vs. I T C LIMITED

JUDGEMENT

(1.) THIS civil revision petition arises out of an order passed by the trial Court on additional issue No. 2 framed by it and the trial Court answered the said issue concerning the jurisdiction of the court in the negative and consequently held that the Court has no jurisdiction to entertain the matter. Aggrieved by the said decision the plaintiff has come up before this Court.

(2.) BRIEF facts necessary for the purpose of this order are that, the suit was filed by the plaintiff seeking a declaration to the effect that the transfer of shares in favour of the 2nd defendant by the 1st respondent herein was illegal and also sought for an order of mandatory injunction against the defendants. The said prayer made in the context of the plaintiff alleging in her pleading that her husband during his lifetime wanted some share certificates held by him in the 1st respondent-company to be transferred in favour of his daughter and her husband, but the shares were not transferred. On the other hand, the 2nd defendant before the trial Court assured the plaintiff that he will get the shares transferred to her name and believing this the plaintiff handed over the share certificates to the 2nd defendant in good faith and following the death of the plaintiffs husband the 2nd defendant committed fraud, cheating and forgery and breach of trust and got all the shares transferred to his own name. It is on this pleading, the plaintiff sought for declaration that the transfer of shares in favour of the 2nd defendant is illegal and void and for mandatory injunction.

(3.) THE defendants contested the said suit of the plaintiff and the learned Judge of the trial Court after framing necessary issues took up additional issue No. 2 for consideration and the said issue related to the jurisdiction of the Civil Court to entertain the matter in the face of a prior bar under Section 15-Y of the Securities Exchange Board of India Act, 1992 ('sebi Act' for short ).