Dale And Carrington Invt. P. Ltd. And ... vs P.K. Prathapan And Others

The Supreme Court addressed the dispute over the control and management of a company formed for operating a hotel, emphasizing the importance of shareholder contributions and the legal implications of share transfers under the Foreign Exchange Regulation Act (FERA). The Court held that the transfer of shares to Prathapan and his wife was subject to obtaining necessary permissions under FERA, and that Ramanujam's lack of financial contribution undermined his claim to control. The judgment clarified the legal standing of shareholders in corporate governance matters, affirming the need for compliance with statutory requirements.