- 1 - 2630 rng IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION NO.2630 OF 2004 Darayus A.Bhathena .. Petitioner vs National Thermal Power Corpn Ltd & anr .. Respondents Mr.A.G.Damle i.b Ms.K.A.Shah for Petitioner Mr.S.V.Doijode i.b Doijode & Associates for Respondent no.1 CORAM: D.K.DESHMUKH & N.D.DESHPANDE, JJ DATE: 23rd November,2010 P.C. 1. By this petition, the petitioner challenges the validity of the provisions of section 205-C of the Companies Act,1956. Section 205-C of the Companies Act,1956 is a scheme which provides for constitution of a Special Dividend Account Fund. Section 205- - 2 - 2630 B relates to payment of unpaid or unclaimed dividend and then comes section 205-C. The scheme is that after the company had declared dividend, a person who is entitled to dividend has to claim that amount within a specified period and if that amount is not claimed within that specified period the Company has to transfer that amount to a designated account. If the amount remains in that account for a period of seven years unclaimed that amount is to be transferred to a fund constituted in section 205-C which fund is to be used by the government for education and protection of investors. Once the amount gets transferred to that fund it cannot be claimed by the person who could have claimed that amount earlier. 2. In the present case, the petitioner s father was holder of 50 bonds of the face value of Rs.1000/- each issued by the - 3 - 2630 respondent no.1company. They were purchased in 1987 and the amount of those bonds were repayable on 27th March,1993.The petitioner s father expired on 6th October, 1991. According to the petitioner, he applied for succession certificate in 2001. It was granted to him by this Court on 27th June, 2002. But, before that on expiry of the period of seven years from 27th July, 1993, as the amount had remained unclaimed it was transferred to the fund under section 205-C and therefore, they became unclaimable by the petitioner. In our opinion, provisions of section 205-C cannot be faulted because, they are reasonable. Seven years period is given for claiming the amount. The amount cannot be kept unclaimed for an indefinite period. Seven years in any case is a reasonable period to be fixed for claiming the amount. In the present case, the petitioner could have immediately - 4 - 2630 on the death of his father applied for the Succession Certificate because, the Succession Certificate was granted to the petitioner within one year of his applying. Therefore, delay in the grant of Succession Certificate cannot be said to be a reason on the part of the petitioner not applying for the same. 3. Taking an over all view of the matter, in our opinion, there is no substance in the challenge raised in the petition. Petition therefore, fails and is dismissed. Rule discharged. No order as to costs. D.K.Deshmukh, J N.D.Deshpande, J - 5 - 2630 - 6 - 2630