LIFE INSURANCE CORPORATION OF INDIA vs ESCORTS LTD. & ORS.

The Supreme Court examined the powers of the Reserve Bank of India under Section 29(1)(b) of the Foreign Exchange Regulation Act, 1973, determining that 'ex-post facto' permission for share purchases by foreign companies is permissible. The Court clarified the nature of shares as property under the Companies Act, 1956, and upheld the right of shareholders to requisition extraordinary general meetings under Sections 169 and 284. The ruling emphasized the importance of corporate democracy and the rights of shareholders, affirming that the refusal to transfer shares must align with statutory provisions.