SADASHIV SHANKAR DANDIGE Vs. GANDHI SEWA SAMAJ LTD

JUDGEMENT

(1.) THESE are petitions at the instance of two persons, Sadashiv Shankar Dandige and Chintaman Jagannath Kathikar, praying for a summary order directing the opponent Company to register the transfer of shares of the Company in their favour under Section 155 of the Indian Companies Act, 1956 (1 of 1956 ).

(2.) THE Gandhi Sewa Samaj, Limited, is a public limited company. They have an authorized capital of 10000 shares of Rs. 10/- each, of which 1304 shares have been subscribed. By two deeds of transfer, two shareholders of the Company, namely, Mr. M. P. Jog and Mr. K. B. Tandaiyya, transferred their hundred shares each, respectively to the petitioner S. S. Dandige on 24-5-56 and to the petitioner C. J. Kathikar on 13-6-1956. Both the transfers were refused by the Company who, in the first instance merely informed the petitioners that they declined to register the transfer of the shares in their names. No reasons were assigned.

(3.) BOTH the petitioners then moved the Central Government in appeal under Section 111 of the Indian Companies Act and by an order passed on 13-11-56 the Central Government ordered the respondent Company to effect registration in their book of the 100 shares transferred to each of the petitioners. Nevertheless it appears the shares were not transferred and ultimately the petitioners have had to move this Court under Section 155 of the Indian Companies Act.