KAMALA SRINIVASAN Vs. UNION OF INDIA

JUDGEMENT

(1.) The instant writ petition challenges the vires of Section 124 (6) of the Companies Act , 2013 and Rule 6 and 7 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 as unconstitutional being violative of Article 14 , 21 and 300 A of the Constitution of India.

(2.) The petitioner states that her son R.Murali Srinivasan passed away on 30/8/1993 intestate at Quriyat, Oman, leaving behind the petitioner and his wife. The petitioner's son was having shares in a Company called I-Flex Solutions Limited (IFLEX). The said Company was taken over by M/s. Oracle Financial Services Software Limited, fourth respondent herein. These shares were allotted to the petitioner in the year 1992.

(3.) Over the years, bonus shares were issued and the petitioner was holding 3200 shares. The market value of the share as on date would be about 1.14 crores. It is also stated that after the petitioner's son passed away, the dividends which were not received and as on date, unclaimed dividends worth Rs.29,92,000/-. It is stated by the petitioner that Section 124 (6) of the Companies Act , which deals with unclaimed dividends provides that all the shares in respect of which dividends have not been claimed for seven consecutive years or more than shall be transferred by the Company in the name of Investor Education and Protection Fund along with a statement containing such details as may be prescribed. Proviso to sub-Section 6 of Section 124 states that claimant of the shares shall be entitled to claim the transfer of shares from the Investor Education and Protection Fund in accordance with such procedure and on submission of such documents as may be prescribed.