NARPAT SINGH Vs. COMPANY LAW BOARD

JUDGEMENT

(1.) IN this writ petition, the petitioner is questioning the legality of the proceedings arising out of Company Petition No. 45/2003 under Sections 397/398 r/w Section 402 of the Companies Act, 1956 pending before the Company Law Board, Principal Bench, Delhi.

(2.) BEFORE proceeding further, the facts material for disposal of the writ petition, as pleaded by the petitioner, may be noticed. The petitioner is a resident of Shillong, Meghalaya. The respondent No. 2 is a private limited company ("the company" for short) registered under the Companies Act, 1956 ("the Act" for short) and having its registered office at Ziakurvilla, Bishnupur, Shillong, Meghalaya. According to him, he is a shareholder of the company with a holding of 2000 equity shares, the value of each share being Rs. 100/-. The shares purchased by him were registered with the Registrar of the Companies at Shillong in accordance with the provisions of the Act under registration Folio No. 48 and Certificate No. 87: he was accordingly issued a share certificate dated 27-2-2002 in his favour. As a shareholder of the company, he has a right over the company, which cannot be taken away without following the procedure laid down by law. According to him, on 17-6-2011, he was surprised to receive the letter dated 10-6-2011 from the respondent-company informing him that the shares allotted to him were being cancelled in connection with a settlement/compromise sought to be arrived at between the respondent-company and the other litigating parties in the said company petition pending before the Company Law Board (respondent

(3.) SINCE the core issue presently revolves round the interpretation of Article 226(1) and (2) of the Constitution of India, it will be instructive to reproduce below these provisions: