GURCHARAN SINGH Vs. RAGHBIR CYCLES PVT LTD

JUDGEMENT

(1.) THIS order shall dispose of Company Application No. 46 of 1993 in Company Petition No. 134 of 1987, and Company Application No. 47 of 1993 in Company Petition No. 79 of 1987 under Rule 9 of the Companies (Court) Rules, 1959, to make the award of Shri D.S. Tewatia, arbitrator -cum -umpire a rule of the court. This order shall also dispose of Company Application No. 45 of 1993 in Company Petition No. 134 of 1987 raising objections under Sections 30 and 31 of Arbitration Act, 1940, against the very same award. Before, however, the objections raised against the award are noticed, it shall be useful to give the factual matrix of the events leading to appointment of the arbitrator.

(2.) GURCHARAN Singh, his wife, Smt. Jaswant Kaur, his daughters, Miss Soniya and Miss Ramanjit Kaur, as also his son, Gurpreet Singh, filed Company Petition No. 79 of 1987 under Section 155 of the Companies Act, 1956, for rectification of the register of members. This petition was fixed against Raghbir Cycles Private Limited, Raghbir Singh and his sons, Manjit Singh, Kanwaljit Singh, Paranjit Singh and Harjit Singh. This petition was filed way back in July, 1987, and at that time Paranjit Singh and Harjit Singh were admittedly minors and were sued through their father, Raghbir Singh, as their natural guardian. It is, inter alia, pleaded that the petitioners hold the following shareholding in accordance with the books of the company : <FRM>JUDGEMENT_737_TLP&H0_1994.htm</FRM>

(3.) The mother of petitioner No. 1, Smt. Chanan Devi, who was also mother of respondent No. 2, it is pleaded, held 1,500 shares. She died on November 2, 1984. These shares, it is pleaded, have been illegally allotted to Paranjit Singh, son of respondent No. 2, who is respondent No. 5 in the petition. Smt. Chanan Devi had two sons, i.e., petitioner No. 1 and respondent No. 2, and as such both of them were equally entitled to the extent of half of these 1,500 shares. This allotment by transmission made in favour of Paranjit Singh on October 15, 1985, was asked to be rectified. Further, the company had allotted 1,500 shares to petitioner No. 1 on July 22, 1985, by a resolution of the board of directors. A return of allotment was filed by the company with the Registrar of Companies. It was pleaded that the petitioner was entitled to the allotment and rectification of the register to the extent of these 1,500 shares. In the year 1981, respondent No. 2 managed to show in the books of the company, various credits as having been made by Sethi Finance Company, Sikri Finance Company and Sachdeva Finance Company. These deposits were started in the year 1981 and were increased as under : <FRM>JUDGEMENT_737_TLP&H0_19941.htm</FRM>