Ashok Ramchandra Panchal Vs Veer Fabricators Private Limted (NCLT Ahmedabad)
The appeal was filed under Section 59 of the Companies Act, 2013 seeking rectification of the Register of Members of Respondent No. 1 Company. The appellants sought restoration of their names as share-holders, removal of Respondent Nos. 2 and 3 from the register, damages of ₹50,00,000, and other con-sequential reliefs.
According to the appellants, they held 10,000 equity shares constituting 100% shareholding of the company from 06.08.2021, with their names recorded in the Register of Members and reflected in the annual report for FY 2020-21. They narrated the changes in directors and shareholding from incorpora-tion onwards and contended that there had been no legal or valid change in the company’s shareholding after 06.08.2021. They asserted that Respondent Nos. 2 and 3 were only directors and had never be-come shareholders through any valid transfer. They further submitted that they had not executed any share transfer forms or transfer deeds, that the original share certificates remained in their possession, and that the respondents had unlawfully caused their names to be removed from the Register of Mem-bers. The appellants relied upon Section 56 of the Companies Act, 2013, Clause 19 of the Articles of As-sociation, and the decision in Suhas Chakma vs. South Asia Human Rights Documentation Centre (P.) Ltd., NCLT-New Delhi.
