CLB ordered transfer of shares to petitioner-insurer as it had obtained rights for lost shares after paying for those shares

Where petitioner-insurer had obtained right in respect of lost shares of respondent-company after paying insurance claim to insured and company had no objection to transfer of shares, shares were to be transferred in name of petitioner.

Facts:

a)A broker had taken insurance policy from petitioner to indemnify him for losses including loss of shares. Petitioner executed the transaction for purchase of shares of respondent-company however certificates of said shares were lost.

b)Accordingly, the petitioner-insurer paid a sum as compensation to insured broker who, in turn, transferred all its rights in respect of shares of respondent-company in favour of petitioner.

c)The petitioner filed petition before CLB for transfer of shares contending that he had acquired all rights, title and interest in respect of shares of respondent-Co.

The Company Law Board held in favour of petitioner as under:

1)The Practicing Company Secretary of respondent-company didn’t object to the prayers made in the petition and stated that company would transfer the shares as requested for subject to furnishing of an indemnity bond and meeting compliances as required in terms of Articles of Association of the company for transfer of shares.

2)Since neither transferors and lodgers nor the respondent-company had raised any objection to transfer of shares in favour of petitioner, shares were to be transferred in name of petitioner – ORIENTAL INSURANCE CO. LTD. V. LUPIN LTD. [2014] 49 TAXMANN.COM 92 (CLB - MUMBAI)