BHENOY G DEMBLA Vs. PREM KUTIR PVT LTD

JUDGEMENT

(1.) ON 14th February, 2003 Justice D. K. Deshmukh allowed an appeal filed by the respondent under section 10-F of the Companies Act, 1956 against an order of the Company Law Board. The maintainability of a Letters Patent Appeal against the order of the learned single Judge has been questioned having regard to the amendment to section 100-A of the Code of Civil Procedure, 1908.

(2.) THE appellants filed an application under section 111 of the Companies act, 1956 against the refusal of the respondent to register the transfer of certain shares in their names. The appellants had entered into an agreement for the sale of Flat 6-C in a building known as Prernkutir, at Backbay Reclamation in Mumbai on 2/10/1993. The respondent having refused to accede to the transfer of 55 equity shares and in view of the provisions of article 40-A of the Articles of Association of the company which stipulate that the ownership of shares of the respondent is essential for the occupation of a flat, the appellants moved an application before the Company Law Board under section 111 of the Act. The Company Law Board held in favour of the appellants by its order dated 23/02/2001. In April 2001, an appeal was filed before the learned Single Judge by the respondent under section 10-F of the Companies Act, 1956. The appeal was allowed by an order dated 14th February, 2003.

(3.) THE amended provisions of section 100-A of the Code of Civil Procedure came into force on 1st July, 2002. Section 100-A as amended provides as follows :