SEBI and Corporate Laws – July 15, 2019

150 SEBI & Corporate Laws - Reports [Vol. 154

n

Section

108

operates

independently

of

section

286

or

section

300.

The

inval

idation -

of

meeting

is

dependent

under

the

provisions

of

section

108.

There

was^

violation

of

section

108

.

HQRL

did

not

file

share

certificate

along

with

the^

duly

executed

share

transfer

form

as

on

10 - 5 - 2005 ,

the

date

of

Board

resolution.^

The

plea

of

‘R’

has

been

disbelieved

that

share

certificates

were

returned^

on

23 - 6 - 2003.

The

High

Court

has

also

ordered

the

proceedings

under^

section

340

Cr.P.C.

against

‘R’

for

filing

an

affidavit

to

the

contrary.

The^

High

Court

has

relied

on

the

affidavit

of

‘V’

and

‘D’,

the

concerned

officials^

of

the

Indian

Overseas

Bank.

The

High

Court

has

found

that

the

share^

certificates

were

delivered

to

‘R’

not

on

23 - 6 - 2003

but

on

23 - 6 - 2005.

No^

doubt

about

it

that

there

was

violation

of

the

provisions

of

section.

[Para^

87 ]

n

In

the

fact

and

circumstances

of

the

case,

taking

into

consideration

the

overall^

scenario,

the

impugned

order

calls

for

no

interference.

However,

direction^

to

prosecute

appellant

‘R’

in

the

facts

of

the

case

is

set

aside.

[Para

89 ]^

n

The

appeals

are

accordingly

disposed

of.

[Para

90 ]

CASE REVIEW
Hillcrest Realty SDN. BHD[ 2014 ] v. Hotel Queens Road (P.) Ltd. [^2013 ] 36 taxmann.com 7 /
123 SCL 149 (Delhi) (para 89 ) affirmed.
Mannalal Khetan v. Kedar Nath Khetan [^1997 ] 2 SCC 424 (para 86 ) and M.S.D.C. Radha
Ramanan v. M.S.D. Chandrasekara Raja [^2008 ] 6 SCC 750 (para 88 ) followed.

CASES REFERRED TO

State of Assam

v.

Barak Upatyaka D.U. Karamchari Sanstha

[ 2009 ]

5

SCC

694

(para

41 ),

Needle Industries (India) Ltd.

v.

Needle Industries Newey (India) Holding Ltd.

[ 1981 ]

3

SCC^

333

(para

42 ),

Sangransinh P. Gaekwad

v.

Shantadevi P. Gaekwad

[ 2005 ]

57

SCL

476

(SC)

(para

42 ),

V.S. Krishnan

v.

Westfort Hi-tech Hospital Ltd.

[ 2008 ]

83

SCL

44

(SC)

(para^

42 ),

CDS Financial Services (Mauritius) Ltd.

v.

BPL Communications Ltd.

[ 2004 ]

56

SCL^

665

(Bom.)

(para

45 ),

National Textile Worker’s Union

v.

P.R. Ramakrishnan

[ 1983 ]

1

SCC

223

(para

49 ),

Ram Parshotam Mittal

v.

Hillcrest Realty SDN. BHD.

[ 2009 ]
94
SCL
120
53 ),^ (SC)^ (para^51 ),^ Parmeshwari Prasad Gupta^ v.^ Union of India^ [^1973 ]^2 SCC^543 (para^
Dale & Carrington Invt. (P.) Ltd. v. P.K. Prathapan [^2004 ] 54 SCL 601 (SC) (para 54 ),
Firestone Tyre & Rubber Co.(para v. Synthetics and Chemicals Ltd. [^1971 ] 41 Comp. Case 377
(para^54 ),^ Madras Tube Co. Ltd.^ v.^ Hari Kishon Somani^ [^1985 ]^1 Comp.^ LJ.^195 (Mad.)^
(para^54 ),^ M.S. Madhusoodhanan^ v.^ Kerala Kaumudi (P.) Ltd.^ [^2003 ]^46 SCL^695 (SC)^
60 ), Mrs. Bacha F. Guzdar v. CIT AIR 1955 SC 74 (para 71 ), Union of India v. Allied
International Products Ltd. 1963 [^1970 ] 3 SCC 594 (para 73 ), Kothari Textiles Ltd. v. CWT AIR
Que^ enMslaadn.^ d^2 )^74 (para^82 ),^ Trojan Equity Ltd.^ v.^ CMI Ltd.^ [^2009 ]^ QSC^ (Supreme^ Court^ of^
3 114 (para^82 ),^ Misra on Indore Development Authority^ v.^ Shailendra^ [^2018 ]^
a^ nSdCC^412 (para^82 ),^ Mannalal Khetan^ v.^ Kedar Nath Khetan^ [^1977 ]^2 SCC^424 (para^86 )^
M.S.D.C. Radha Ramanan v. M.S.D. Chandrasekara Raja [^2008 ] 6 SCC 750 (para 88 ).

S. Udaya Kumar Sagar

,

Ms. Bina Madhavan

,

Nitesh Jain

,

Piyush Dwivedi

,

Shreyasi Kunwar

,

Advs.

Kunal Verma

,

Kumar Mihir

,
Ardhendumauli Kumar
Prasad

,

Gopal Jha

and

Yugandhara Pawar Jha

,

AOR’s

for the Appearing Parites.