M.A.PANJWANI Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) This is a petition filed by the petitioner i.e. M.A. Panjwani under Section 560 (6) of the Companies Act, 1956 read with Rules 9 & 92 of the Company Court Rules, 1959. The prayer in the petition is for directions to the Registrar of Companies, who is the respondent No.1, for restoring the name of respondent No.2 i.e. M/s. Alfa Impex Pvt. Ltd. (hereinafter referred to as "Company") to the register of companies maintained by respondent No.1.

(2.) It is necessary to briefly refer to the events that resulted in filing the present petition. The petitioner was residing in the United Kingdom. In the year 1979 he wanted to settle down in India. With this end in view, he engaged the services of respondent No.3 i.e. Mr. D.C. Singhania for searching a suitable house in Delhi. Singhania identified a property known as "Jodhpur Gardens" in village Gadaipur, Tehsil Mehrauli. On his request, the petitioner remitted a sum of Rs.3,00,000/- in November, 1979 in favour of Singhania for the purchase of the aforesaid property. Singhania took possession of the property as agent of the petitioner and confirmed the same in writing to the petitioner. In January, 1980, the petitioner remitted further sums from England in favour of Singhania, being the balance of the purchase price of the property. In the same month, he visited Delhi with his family and stayed in the property. While at Delhi, he requested Singhania to give him the conveyance deed in respect of the property but was told by Singhania that it would take some time to get the original document. Trusting his word, the petitioner returned to England and between the years 1981 and 1986, repeatedly inquired about the conveyance deed with D.C. Singhania, who, under some pretext or the other kept deferring the issue and giving evasive answers.

(3.) His suspicion having been excited, the petitioner made inquiries in Delhi through persons known to him who informed him that the property was registered in the name of the company and was in the possession and personal use of D.C. Singhania since January, 1980. On being so informed, the petitioner filed a suit for declaration, mandatory injunction and damages. On 16.11.1989, the Civil Court granted stay in favour of the petitioner and restrained the defendants (the company, D.C. Singhania & Solicitor Firm in which he was a partner) from alienating the property known as "Jodhpur Gardens" in any manner. In the written statement filed by Singhania in the suit, he stated that the total amount of Rs.4,50,000/- remitted by the petitioner was used for allotting shares of the company in favour of the petitioner, thereby enhancing the share capital of the company.