SATISH KUMAR SETH Vs. SETH HOTELS (P) LTD.

JUDGEMENT

(1.) LEARNED Counsel for Respondents No. 18(a) to (d) accepts notice of the company petition and Company Application No. 657 of 2009.

(2.) HEARD on Company Application No. 657 of 2009 questioning the maintainability of Company Petition No. 99(ND) of 2009 on the ground that the Petitioners have transferred their entire shareholding on 7 February, 2006, and, therefore, do not possess the requisite share qualification as required under Section 399 of the Companies Act, 1956, on the date of the petition. Section 399(1) of the Companies Act, 1956, reads as under:

(3.) THE applicants contend that on 7 February, 2006, both Petitioners Nos. 1 and 2 sold and transferred their entire shareholding to the applicants and their associates. They also contend that the entire consideration was paid in full to the Petitioners through account payee cheques in lieu of transfers of the entire shareholding, i.e., 1,94,700 shares in Respondent No. 1 company. The same fey reflected at page 6 of the application, where the details of the cheques through which the said consideration was paid to the Petitioners are provided. The applicants/Respondents have produced xerox copies of the original sha(sic) certificates which record the memorandum of transfer of shares on 7 February 2006, on its reverse. At the time of arguments, the applicants have produced the original share certificates and transfer deeds to show custody of the original sha(sic) certificates as endorsed in favour of the respective transferees by the Petitioner. These shares certificates have been signed by both Petitioners, i.e., Mr. Satish K. Seth and Mr. Rajinder K. Seth, thereby excluding any possibility of manipulation by the applicants.