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(2). Upon submission, Form No.IEPF-5 shall be transmitted online to the Nodal Officer of the Company for verification of claim:
Provided that the claimant after making an application in Form No.IEPF-5 under sub-rule 1, shall send original physical share certificate, original bond, deposit certificate, debenture certificate, as the case may be, along with Indemnity Bond, Advance Receipts, any other document as enumerated in Form No.IEPF-5, duly signed by him, to the Nodal Officer of the http://www.judis.nic.in concerned company at its registered office for verification of the claim.

20. Mr.Sricharan Rangarajan, learned counsel for the petitioner, in his challenge to Rule 6 and Rule 7 of the Investor Education and Protection Authority Fund (Accounting, Audit, Transfer and Refund) Rules, 2016, would state that the procedure as prescribedin the said Rules are http://www.judis.nic.in extremely cumbersome. Heavy expenditure has to be incurred by the claimants for retriving their shares. He would state that initially the 2016 rules provided for return of physical certificates of shares transferred to IEPF. However, after the 2017 amendment, such shares are to be mandatorily converted to DEMAT form while transferring to IEPF. Therefore, the claimants/legal heirs are forced to incur additional expenditure to open DEMAT accounts in order to claim back their own shares. He would state that even though some companies are not mandated to keep their shares in DEMAT form, due to the transfer of shares to IEPF, the companies are forced to incur high expenditure for the conversion of physical shares to DEMAT and to subsequently transfer the same to IEPF’s DEMAT Account.

40. Sections 124 and 125 of the New Companies Act, 2013, replaced http://www.judis.nic.in Sections 205-A, 205-B and 205-C. The mechanism of the transfer of unpaid dividend to the IEPF, remain unchanged. However, under the New Act, shares for which dividend had not been paid for over 7 years, would also now be transferred to the IEPF, by virtue of Section 124(6). The proviso to Section 124(6) however protected the right of a shareholder to recover the share from the IEPF. A shareholder, whose shares stood transferred to the IEPF, could make an application in accordance with the Rules laid down.

49. There is no doubt that as a result of the impugned provisions, the shares on which dividend is unclaimed for more than 7 years are to be transferred to the IEPF, but that does not amount to deprivation of property.This is for two reasons. Firstly, under Section 124(6), there is no statutory vesting of the shares so transferred to the IEPF. Section 124(6), only contemplates a transfer of shares to the IEPF, and does not confer ownership of the shares on IEPF. This position is reflected in the proviso to Setion 124(6), which provides that a person shall always be permitted to re-claim his shares, from the IEPF. Secondly, the Rules prescribed under Section 124(6), provide for a procedure for the refund of the shares so transferred to the IEPF.Rule 7, of the IEPF Rules, 2016 a procedure is prescribed for the refund of the shares by the IEPF to the owner of the shares. Rule 7(1) is extracted below: