Lawstreet Journal

NCLAT Directs SC To Register Transfer Of Shares To Investors' Legal Heirs, Rs. 5 Lakhs Penalty Imposed On DLF As Costs For Harassing Poor Investors

Lawstreet Journal 21 Jan 2020 3:31pm

Image courtesy: Lawstreet Journal Business NCLAT Directs SC To Register Transfer Of Shares To Investors' Legal Heirs, Rs. 5 Lakhs Penalty Imposed On DLF As Costs For Harassing Poor Investors

The National Company Law Appellate Tribunal on January 19, 2020 decided in favour of the respondents in the DLF case who are the investor’s legal heirs. The tribunal directed that the appellant company Delhi Land and Finance (DLF) Ltd. should register a transfer of 60,000 shares to the deceased shareholder’s legal heirs. Besides this the tribunal also imposed an amount of Rs. 5 lakhs as costs for ‘harassing the poor investors’.

The decision was given by a three judge bench. The order came in a petition filed by the DLF company and one of its promoters challenging the order given by the Chandigarh Bench of  National Company Law Tribunal (NCLT). The NCLT in December, 2018 had given similar directions based on theterms of the Letter of Administration issued by the District Judge.

The facts of the case are as follows: Devki Nandan Kaur, father of the respondents held 150 equity shares of  Rs.10 each with the company which were subsequently converted into 6000 equity shares of Rs. 2 each. The father died in 1987. In 2005 the company gave rights issue to all the existing holders. When the deceased shareholder’s legal heirs claimed the same, the company rejected their claim stating that the company was not informed about the shareholder’s demise and it exceeded the limitation period. DLF had submitted the same before the appellate court and argued that the convertible debentures on rights basis are not inheritable. The respondents on the other hand submitted that when they approached DLF, the company… Continue Reading...


Tagged: NCLAT  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
Featured Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com