Case Law Details
RELEVANT EXTRACTS:
The Appellant filed a Civil Suit upon refusal by the Second Respondent Company to register shares transferred by the First Respondent in the name of the Appellant on the ground that the signature of the transferor did not tally with the signature in the company records. The transferor did not contest the suit and the trial court passed a decree in favour of the Appellants. The lower appellate court, on appeal by the Respondent Company, allowing the appeal held that the Civil Court had no jurisdiction to entertain the suit.
The Court observed that section 111 of the Companies Act, 1956, provides that a company may refuse registration of shares and against such refusal an appeal is provided to the Company Law Board.
The High Court held that there was no infirmity in the judgement of the lower appellate court holding that the Appellant had an efficacious alternative remedy provided under the Companies Act, 1956 and no interference was required.
