18/2021 Judicial Companies Misc. N.P waterproof Industries Pvt ltd & others (Applicant) V/S N.P spinning Mills limited & Others (Respondent)
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author)
18/2021 Judicial Companies Misc. N.P waterproof Industries Pvt ltd & others (Applicant) V/S N.P spinning Mills limited & Others (Respondent) Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Shafi Siddiqui(Author) Order Date: 06-OCT-22
Though this is not in dispute but the arguments put forward by learned counsel for petitioners is that by virtue of being a Muslim, shares automatically devolve upon the legal heirs of deceased shareholder. This perhaps may be a case under Muhammaden Law where rights are being acquired in respect of movable and immovable assets under general law, but in case where an entity is created by a special law, it is to be dealt with within that frame of special law. No provision of this special Act would take away any of their right under the general law but it laid down a procedure of its own because the entity is the creation of company law. The successor who intends to take advantage of any of its shareholding left by deceased has to go through a process prescribed by company law and that is Section 78 of the Companies Act, 2017