Mumbai Court December 2016 Judgments

Shakti Yezdani and Others Vs. Jayanand Jayant Salgaonkar and Others

Court: Mumbai

A.S. Oka, J. THE CONTROVERSY 1. The issue which arises for consideration in this group of Appeals is whether the view taken by the learned Single Judge in the case of Harsha Nitin Kokate v. The Saraswat Co-operative Bank Limited and Others (2010(3)Mh.L.J 780)is correct. In Harsha Nitin Kokate's case, in paragraphs 24 and 25, it was held thus: 24. In the light of these judgments section 109A of the Companies Act is required to be interpreted with regard to the vesting of the shares of the holder of the shares in the nominee upon his death. The act sets out that the nomination has to be made during the life time of the holder as per procedure prescribed by law. If that procedure is followed, the nominee would become entitled to all the rights in the shares to the exclusion of all other persons. The nominee would be made beneficial owner thereof. Upon such nomination, therefore, all the rights incidental to ownership would follow. This would include the right to transfer the shares, pledg...