MATHALONE vs BOMBAY LIFE ASSURANCE CO. LTD.PINGLE VENKAT RAMA REDDYV.S

The Supreme Court held that under Section 105-C of the Indian Companies Act, a transferor is not compelled to acquire new shares for a transferee unless there is a clear obligation to do so. The court ruled that A, who sold shares to B but did not apply for new shares, could not be held liable for damages as he was not required to incur financial liabilities for B's benefit. Furthermore, the requisition made by solicitors on behalf of B was deemed ineffective, and the company was not obligated to recognize the receiver as a shareholder since he was not on the register.