RAHUL SUBODH WINDOORS LTD. versus A.K. MENON AND ANR.

RAHUL SUBODH WINDOORS LTD. versus A.K. MENON AND ANR.

The Special Court has exclusive jurisdiction over matters relating to property attached under S. 3(3) or transactions under S. 9A of the Act, and since there was no valid allotment of shares to the notified person, the appellant company was rightly directed to return the amount with interest to the Custodian.

Parties
Appellant: Rahul Subodh Windoors Ltd.; Respondent No.1 (custodian): A.K. Menon; Respondent No.2 (notified Person): A.K. Menon (Respondent No. 2)
Jurisdiction
India
Judgment Date
06 April 1999
Procedural Posture
Criminal Appeal / Appeal From the Judgment and Order Dated 9.2.95 of the Special Court at Bombay in Misc. Application No. 513 of 1994
Outcome
Appeal dismissed
Legal Topics
Jurisdiction of Special Court, Attachment of Property, Allotment of Shares, Buy Back Arrangements, Financial Transactions
Securities Law Company Law Criminal Law Jurisdiction of Special Court Attachment of Property Allotment of Shares Buy Back Arrangements Financial Transactions

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Parties

Rahul Subodh Windoors Ltd.

Appellant

A.K. Menon

Respondent No.1 (custodian)

A.K. Menon (Respondent No. 2)

Respondent No.2 (notified Person)

Procedural Posture

Criminal Appeal / Appeal From the Judgment and Order Dated 9.2.95 of the Special Court at Bombay in Misc. Application No. 513 of 1994

Legal Issues

  1. 1 Whether the Special Court had jurisdiction to order the return of money received by the appellant for issuing share certificates.
  2. 2 Whether there was a valid allotment of shares by the appellant to the second respondent.

Ratio Decidendi

The Special Court has exclusive jurisdiction over matters relating to property attached under S. 3(3) or transactions under S. 9A of the Act, and since there was no valid allotment of shares to the notified person, the appellant company was rightly directed to return the amount with interest to the Custodian.

Court Disposition

Appeal dismissed

Orders

  • Appellant to pay Custodian, for and on behalf of the second respondent, the sum of Rs. 20 lakhs with interest at 18% per annum from November 13, 1991 till payment.