PADMINI TECHNOLOGIES LTD Vs. T S SAWHNEY

JUDGEMENT

(1.) The present appeal has been filed under Section 10F of the Companies Act, 1956 (for short 'the Act') challenging the order dated th 20November, 2007 passed by the Company Law Board (for short 'CLB') in Co. Pet. 17/111/2000-CLB.

(2.) I may mention that this matter was partly heard yesterday and remaining arguments have been heard today. On both the occasions, none was present for the Respondents. Accordingly, after hearing the arguments of learned Counsel for the Appellant-Company, I am proceeding to dictate the judgment.

(3.) The relevant facts of the present case are that 63,700 shares of M/s. Padmini Technologies Ltd. were pledged by M/s. H.T. Ferro Alloys with the Respondents with a clear undertaking authorizing the Respondents to sell or transfer the said pledged shares. However, when the Respondents presented the said shares for transfer with the th Appellant-Company on 18March, 1997, which was the record date for CO. A. (SB) 43/2009 Page 2 of 7 issuance of bonus shares, the Appellant-Company refused to issue any shares to the Respondents. Also, the Appellant-Company did not comply with the provisions of Section 206A of the Act.