BISHWANATH MURLIDHAR JHUNJHUNWALA Vs. RITESH POLYESTERS PVT LTD

JUDGEMENT

(1.) LEAVE under Rule 147 and 148 of the High Court of Judicature at Bombay (O.S.) Rules, 1980 granted to the plaintiff to take out Notice of Motion in terms of draft Notice of Motion handed in. Notice of Motion made returnable after four weeks.

(2.) THIS is a notice of motion taken out by the plaintiff. The dispute in the suit relates to the shares of the defendant no.1-company. Admitted position is that these shares were held by the defendant nos.2, 3 and 4. They entered into a transaction for sale of 4,24,900 shares. Out of these shares, disputed shares are 2,67,400 shares. It appears that these shares were sold by the defendant no.5 to the defendant no.6 and through the defendant nos.7 and 8 - sub-brokers, the plaintiff sold these shares in the market. The application made by the purchasers of the disputed shares with the defendant no.1-company for transfer of shares in their names, are not being considered by the defendant no.1-company and, therefore, the plaintiff through whom the shares were sold, has approached this Court.

(3.) IN these circumstances, it is the case of the plaintiff that it is clear from the statement of the defendant nos.2, 3 and 4 that the defendant no.5, contrary to the agreement between him and the defendant nos.2, 3 and 4 sold the disputed shares and received consideration for them. According to the plaintiff, therefore, the claim of the defendant nos.2, 3 and 4 can be against only defendant no.5. The defendant nos.2, 3 and 4 as also the defendant no.1 - company cannot withhold transfer of shares to the subsequent purchasers only because, according to the defendant nos.2, 3 and 4, the defendant no.5 has sold the shares in breach of contract which he had entered into with the defendant nos.2, 3 and 4. According to the plaintiff, therefore, the defendant no.1 company is required to be directed by an ad-interim order directing registration of these disputed shares in accordance with law and in accordance with listing agreement that the defendant no.1 has with the Stock Exchange.