LUXMI TEA COMPANY LIMITED vs PRADIP KUMAR SARKAR

The Supreme Court held that under Section 108 of the Companies Act, 1956, a shareholder has the right to transfer shares unless impediments exist. The Court clarified that the company must have specified powers to refuse registration of share transfers, which cannot be exercised arbitrarily or for collateral purposes. The appeal by the company was dismissed, affirming that the transferee is entitled to rectification of the share register unless a bona fide reason exists for refusal, as outlined in Section 155 of the Companies Act.