Ullal Chavadi Arun Bhatt vs Mrf Limited And 3 Ors. — Bombay HC (2025) — LawSathi Research

Ullal Chavadi Arun Bhatt vs Mrf Limited And 3 Ors. — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Directions issued to Respondent Nos.3, 4 and 5 (IEPFA functionaries/Officer) to take immediate cognizance of the Interim Application and depute a responsible Officer, alongwith Pleader if desired, to explain the dereliction in transferring the shares; copy of the order to be served on Respondent Nos.3 to 5 – IEPFA by the Advocate for the Petitioner; matter stood over to 24th September, 2025; praecipe disposed.

Issue for consideration

Whether Respondent Nos.3, 4 and 5 (functionaries and Officer of IEPFA) are to be directed to take cognizance of the Interim Application and account to the Court for the dereliction in effecting the transfer of shares after the prescribed timeline had lapsed.

Court's answer

Respondent Nos.3, 4 and 5 (the functionaries and Officer of IEPFA) shall take immediate cognizance of the Interim Application and depute a responsible Officer on their behalf to remain present in Court alongwith Pleader, if desired, to inform the Court the reason why the dereliction has taken place.

Ratio / Principle

Copy of the order shall be served on Respondent Nos.3 to 5 – IEPFA by the Advocate for the Petitioner.

Key takeaways

Transmission of shares and unclaimed dividends, once procedural compliance is achieved, are required to be transferred immediately, since delay leads to loss of substantial interest of the holder.obiter¶19

Detailed headnote1 paragraphs

Interim Application No.1293 of 2025 in Petition No.4460 of 2023 (Testamentary and Intestate Jurisdiction, Bombay High Court): The timeline for transfer of shares had lapsed and the Investor Education and Protection Fund Authority (‘IEPFA’) had not effected the transfer, compelling Applicant/Petitioner Ullal Chavadi Arun Bhatt to mention the matter by praecipe dated 16.09.2025. Milind N. Jadhav, J. directed Respondent Nos.3, 4 and 5 – the functionaries and Officer of IEPFA – to take immediate cognizance of the Interim Application and depute a responsible Officer to remain present in Court alongwith Pleader, if desired, to inform the Court why the dereliction had taken place. The Court observed that transmission of shares and unclaimed dividends, once procedurally complied with, must be transferred immediately as delay leads to loss of substantial interest of the holder. Copy of the order was to be served on Respondent Nos.3 to 5 – IEPFA by the Petitioner’s Advocate; the matter stood over to 24th September, 2025 and the praecipe was disposed.

P2.IA.1293.2025.doc

HARSHADA H. SAWANT (P.A.)

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

TESTAMENTARY AND INTESTATE JURISDICTION

INTERIM APPLICATION NO.1293 OF 2025

IN

PETITION NO.4460 OF 2023

Ullal Chavadi Arun Bhatt	.. Applicant
IN THE MATTER BETWEEN:
Ullal Chavadi Arun Bhatt Versus	.. Petitioner
MRF Limited and Ors. ................	.. Respondents ....

Ms. Sheetal Shah, Advocate i/by Mehta and Girdharlal for Applicant.

CORAM : MILIND N. JADHAV, J. DATE : SEPTEMBER 16, 2025

P.C.:

1. Not on Board. Mentioned by way of filing praecipe dated 16.09.2025. Perused the praecipe.

2. Heard Ms. Shah, learned Advocate for Applicant / Petitioner.

3. The timeline for transfer of shares has lapsed. Investor Education and Protection Fund Authority (for short ‘ IEPFA ’) is required to comply with transfer of shares which has not been done resultantly leading to ignominy of Applicant / Petitioner to file the present Application.

4. Respondent Nos.3, 4 and 5 are the functionaries and Officer of IEPFA. They shall take immediate cognizance of this Interim Application and depute a responsible Officer on its behalf to remain

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P2.IA.1293.2025.doc

present in Court alongwith Pleader if so desired to inform the Court the reason as to why the dereliction has taken place.

5. Transmission of shares and unclaimed dividents once complied with procedurally, are required to be transferred immediately since it leads to loss of substantial interest of the holder.

6. Copy of this order shall be served on Respondent Nos.3 to 5 – IEPFA by Advocate for Petitioner.

7. Stand over to 24^th September, 2025 .

8. Praecipe is disposed.

H. H. SAWANT

[ MILIND N. JADHAV, J. ]

HARSHADAHANUMANT Digitally signed byHARSHADAHANUMANTSAWANT SAWANT Date: 2025.09.16 16:37:41 +0530

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