ABB LTD Vs. SANDEEP SURI

JUDGEMENT

(1.) THE challenge by means of this Regular First Appeal (RFA) filed under Section 96 of Code of Civil Procedure, 1908 (CPC) is to the impugned judgment of the trial Court dated 3.11.2003 by which the suit of the respondent/plaintiff for declaration and injunction for ownership with respect to 600 shares of the appellant -company was decreed. I may note that out of the total of 600 original shares which were in dispute, presently, the disputes only remains for 50 shares, inasmuch as, 500 shares were transferred to the respondent No.1/plaintiff during the pendency of this appeal and another 50 shares were transferred even prior to the institution of the suit.

(2.) THE trial Court has decreed the suit by observing that the claim of respondent No.1/plaintiff with respect to the disputed shares was lodged in 1997 with the appellant/defendant No.1, but the appellant/defendant No.1 allowed the shares to be dematerialized and transferred much subsequently in the year 1999 and, therefore is liable to respondent No.1/plaintiff.

(3.) THOUGH in the interregnum between 24.11.1998 and 25.2.1999 the lot of 50 shares were allowed to be dematerialized, the learned counsel for the appellant, however, could not dispute the legal position that an interim order cannot finally destroy the legal rights of a person. Further, it could not be disputed that a period of 90 days in law is available as per Article 116 of Limitation Act, 1963 to challenge an order to a High Court of a lower Court, however, without waiting for this period of limitation of 90 days to expire, appellant/defendnat No.1 allowed the shares to be dematerialized and transferred to defendant No.7 who had no title to the said shares.