Bombay High Court
SOONNU DINSHAW KATRAKversusTHE CUSTODIAN AND ORS.
- Decided
- Disposal
- DISPOSED OFF
- Bench
- N JAMADAR
Holding
The stop‑transfer direction stands lifted and the applicant is entitled to certification and transfer of the 50 shares.
Summary
The applicant, Soonnu Dinshaw Katrak, sought certification and transfer of 50 Apollo Tyres shares that were purchased in 1999 but whose parents, the registered owners, are now deceased. The Custodian had placed a stop‑transfer restraint on the shares under a public notice relating to the Harshad Mehta group. The applicant argued that the shares fell within the first category of an earlier court order dated 5 May 2001, which lifts stop‑transfer directions for shares that have undergone successive transfers after 8 June 1992. The Custodian contended that the applicant had not produced the required payment documents, while the Notified Party did not object to certification. The court examined the transfer history, found that the shares had indeed been transferred after the cut‑off date, and held that the restraint should be lifted, ordering the Custodian to transfer the shares and all accrued dividends to the applicant within eight weeks.
Issues considered
- Whether the stop‑transfer restraint imposed by the Custodian on the subject shares can be lifted under the order dated 5 May 2001 (MP No.88 of 2000).
- Whether the applicant is entitled to certification and transfer of the shares despite the absence of proof of payment.
- Whether the court should direct the Custodian to release all accruals and dividends on the shares.
Legislation cited
Subjects
- share certification
- stop‑transfer restraint
- dematerialisation
- Securities law
- Special Court
- share transfer
- proof of payment
- custodian
Judgment
16-SPMA-24-2025.DOC
IN THE SPECIAL COURT AT BOMBAY
Constituted under the Special Court (Trial of Offences Relating to
Transactions in Securities) Act, 1992
MISCELLANEOUS APPLICATION NO. 24 OF 2025
Soonnu Dinshaw Katrak (One of the Applicant ...Applicant
and also sole legal heir of deceased Dadabhoy
Hiraji Bharucha and Freny Dadabhoy Bharucha,
who were the original purchasers/owners of the
shares of Respondent No.2
Versus
The Custodian and Ors …Respondents
Mr. Farhad Vakil, i/b Mulla and Mulla and craigie Blunt and Caroe,
for the Applicant.
Mr. Gandhar Raikar, with Shilpa Bhate (through VC) and Payal
Mehta, for the Custodian.
Mr. Siddhant Marathe, i/b Shardul Amarchand Mangaldas and Co, for
Respondent No.2-Apollo Tyres Limited.
Mr. Ashwin Mehta, for the Notified Party.
CORAM: N. J. JAMADAR, J.
Judge, Special Court
DATE : 10th JULY 2026
ARUN
RAMCHANDRA ORDER:
SANKPAL
Digitally signed by
ARUN
RAMCHANDRA
SANKPAL
1. This is an application for certification of 50 shares of Apollo Tyres
Date: 2026.07.13
18:43:41 +0530
Ltd (ATL) (R2), having Certificate Nos. 00247454 to 00247455 ,
Distinctive Nos. 015732013 to 015732062, under Folio No. 0107334
(the subject shares).
2. The Applicant claims that the Applicant and his father Dadabhoy
Hiraji Bharucha, and mother, Freny Dadabhoy Bharucha, had purchased
the subject shares from Purvez DB Boywala (R3), in the year 1999. The
ARS 1/5
16-SPMA-24-2025.DOC
Applicant is not in a position to locate and place on record the proof of
payment of price for the purchase of the shares. However, the subject
shares were duly transferred in the name of the Applicant and his
parents Dadabhoy and Freny, who passed away on, 24 th July 2005 and
25th March 2000, respectively, in the year 1999 itself.
3. When the Applicant applied to ATL (R2) to delete the names of
deceased parents, the ATL (R2) informed the Applicant on 3 rd
September 2018 that the Custodian (R1) has put stop
transfer/demant/duplicate/dividend restraint in regard to the shares
declared by Harshad Mehta Group, including the subject shares.
4. Pursuant to a public notice dated 31 st January 2025 and the
communication dated 5th February 2025 addressed by the ATL (R2) to
the Applicant, the Applicant has preferred this Application to lift the
attachment over the subject shares and to release/pay all the
accruals/accretions and dividend thereon.
5. The Custodian has filed a Certification Report. It is, inter alia,
contended that apart from the photostat copy of the share certificate,
the Applicant has not submitted the requisite documents for
certification of the subject shares.
6. A perusal of the documents placed on record indicates that the
subject shares were initially allotted to Sucheta Ramesh Vaidya and
Ramesh Damodar Vaidya, in the year 1989. Subsequently the shares
ARS 2/5
16-SPMA-24-2025.DOC
changed hands. The shares came to be registered in the name of Parvez
DB Boywala in the year 1995. Eventually, on 18 th January 1999, the
shares were transferred in the name of the Applicant and his parents.
The fact that the Applicant is the registered holder of the subject shares,
becomes abundantly clear from the communication addressed by
KFINTECH, RTA of ATL (R2), a copy of which is annexed to the
Certification Report at Exhibit “D”.
7. The said communication clearly records that the subject shares
are registered in the name of the Applicant and his deceased parents
and the Custodian has vide letter dated 14 th June 2001 directed the ATL
(R2) to stop transfer of the shares forming part of MA No. 39 of 2018,
which include the subject shares. Thus, the subject shares have
remained under stop transfer instructions.
8. Mr. Raikar, learned Counsel for the Custodian, fairly submitted
that the instant case would be covered by the order dated 5 May 2001
in MP No.88 of 2000, whereby the stop transfer directions issued by the
Custodian stood lifted in case of successive transfers, after 8 June 1992.
9. The operative directions in the order dated 5 May 2001 read as
under :
“The Custodian is directed to inform the said companies
that they are free to transfer / demat 27 lakh shares whose
particulars are given in Exhibit G to the Petition, except
those shares which have not been transferred in the books
of the companies till today since 8 th June 1992. In other
ARS 3/5
16-SPMA-24-2025.DOC
words, in case of successive transfers after 8 th June 1992,
the Stop Transfer Direction of the Custodian to the
companies stands lifted whereas in cases where shares
continue to stand in the name of the registered holder as
on the date of the Notification i.e. 8 th June 1992 till today,
the Stop Transfer Direction given by the Custodian will
continue to operate. In the latter case, the purchasers of
the shares will have to approach this Court for certification
and thereupon the Court will examine such cases
individually on the basis of bonafides of the transaction as
well as the proof of payment.
Accordingly, the Custodian is directed to forward copy of
this order to each of the said 90 companies who, in turn,
will intimate the same to the holders seeking
transfer/demat of their respective shares. However, it is
made clear that those shares which are the subject matter
of the earlier orders of this Court shall continue to be
governed by such orders.”
10. In the case at hand, the material on record indicates that, there
were successive transfers after 8th June 1992 before the subject shares
came to be registered in the name of the Applicants. Clearly the instant
case would be covered by the first category in respect of which the stop
transfer instructions issued by the Custodian stood lifted.
11. Mr. Mehta, learned Counsel for the Notified Party, fairly
submitted that, having regard to the small quantity of shares, and, in
the facts of the case, without prejudice to the rights and contentions of
the Notified Party to oppose the prayer for certification in other cases,
ARS 4/5
16-SPMA-24-2025.DOC
the Notified Party does not object to the certification of the shares in
this case.
12. As the case in hand seems to be governed by the first category, as
carved out by the order dated 5 May 2001, the restraint on the
transfer / de-materialization of the shares deserves to be lifted. For the
foregoing reasons, the Application deserves to be allowed.
13. Hence, the following order :
:ORDER:
(i) The Misc. Application stands allowed.
(ii) The prayer for certification of 50 shares of Apollo
Tyres Ltd. (R2) bearing Certificate Nos. 00247454 to
00247455 , Distinctive Nos. 015732013 to 015732062,
under Folio No. 0107334, stands allowed.
(iii) The Custodian (R1) shall take necessary steps to
transfer the subject 50 shares along with all accruals and
dividends, as indicated in paragraph No.10 of the
Certification Report, in favour of the Applicant, within a
period of eight weeks from today.
The Misc. Application stands disposed.
[N. J. JAMADAR, J.]
ARS 5/5
Checking your session…
Lawyer court records for this case
Associated through the court’s case reference.