S. CHAND Vs. M/S BHARAT CARPETS LTD

JUDGEMENT

(1.) Present application has been filed by the propounders of the Scheme under Section 536(2) of the Companies Act, 1956 (for short 'Act') read with Rule 9 of the Companies (Court) Rules, 1959 seeking validation of purchase of shares after the winding up order dated 18th May, 1987. It has further been prayed in the application that the Official Liquidator be directed to make necessary amendment in the Company's Register of Members.

(2.) Mr. S.M. Saxena, learned counsel for Mr. Puneet Gupta and five others, submits that the contributories have no right to sell the shares of company in liquidation as by virtue of Sections 391 to 392 of the Act, only by way of a Scheme of Arrangement, can the contributories transfer their shares.

(3.) Mr. Saxena further submits that Court's permission should have been sought prior to the execution of the Memorandum of Understanding between the applicants-propounders and the objector/transferor.