Mr. Raj who is a resident of Bengaluru, sent a Transfer Deed for registration of transfer of shares, to the company at the address of its registered office in Delhi. He did not receive the share certificates even after t

According to Section 56(1) of the Companies Act, 2013 a company shall not register a transfer of securities of the company, unless a proper instrument of transfer duly stamped, dated and executed by or on behalf of the transferor and transferee has been delivered to the company by the transferor or transferee within a period of 60 days from the date of execution along with the share certificates relating to the securities, or if no such certificate is in existence, then along with the related certificate or letter of allotment of the securities. According to Section 56(4) of the Companies Act, 2013 every company unless prohibited by any provision of law or of any order of court, Tribunal or other authority, shall deliver the certificates of all shares transferred within a period of one month from the date of receipt by the company of the instrument of transfer. Hence, in the given case, if all the required formalities are duly complied with by the Transferor or Transferee, the Company was required to issue share certificate(s) within the stipulated time period. Further, under section 56(6), where any default is made in complying with the provisions of sub-section (1) to (5) of Section 56 (which deals with transfer and transmission of shares), the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees. The jurisdiction binding on the company is that of the State in which the registered office of the company is situated. Hence, in the given case the Bengaluru Court is not competent to take action in the matter.