The transferee filed an appeal to the Central Government under Section 111 Clause 3 of Indian Companies Act, 1956 which was dismissed.
Thereafter, the son of the original transferee filed another application for transfer of his shares which was similarly refused by the Company.
On appeal, the Central Government quashed the resolution passed by the Company and directed the Company to register the transfer.
The companypany challenged the said decision before this Court.
However, in passing the said order, Government did number give any reason.
