Case Note & Summary
The petitioner, Comunidade of Nagoa, represented by its Attorney, filed a writ petition challenging the order of the Administrator of Communidades dated 12.11.2009 and the Administrative Tribunal's order dated 14.07.2011, which confirmed the Administrator's order. The petitioner had invoked Article 438 of the Code of Communidades seeking a declaration that the Comunidade had acquired the shares of certain Joneiros or Zonnkars who had not claimed dividends for 30 consecutive years. The Administrator rejected the application on the ground that dividends were not declared for several years (1977, 1979, 1980, 1983, 1984, 1985), and therefore the 30-year consecutive period could not be calculated. The Administrative Tribunal upheld this order. The High Court, after hearing both sides, found that the Administrator and Tribunal had misconstrued Article 438. The court held that the requirement of '30 consecutive years' refers to the period during which dividends have not been claimed, not the period during which dividends were declared. The non-declaration of dividends does not break the continuity of the non-claim period. The court set aside the impugned orders and remanded the matter to the Administrator for fresh consideration in accordance with the correct interpretation of Article 438.
Headnote
A) Interpretation of Statutes - Code of Communidades - Article 438 - Consecutive Period of Non-Claim of Dividends - The issue was whether the 30-year consecutive period under Article 438 requires that dividends be declared every year for the period to run. The High Court held that the Administrator erred in requiring dividend declaration each year; the period of non-claim runs from the date dividends were last declared and not claimed, and non-declaration of dividends does not break the consecutive period. (Paras 1-10)
Issue of Consideration
Whether the Administrator and the Administrative Tribunal correctly interpreted Article 438 of the Code of Communidades in rejecting the Comunidade's application for declaration of acquisition of shares due to non-claim of dividends for 30 consecutive years.
Final Decision
The High Court allowed the writ petition, set aside the orders of the Administrator dated 12.11.2009 and the Administrative Tribunal dated 14.07.2011, and remanded the matter to the Administrator for fresh consideration in accordance with the correct interpretation of Article 438.
Law Points
- Interpretation of Article 438 of the Code of Communidades
- Consecutive period of 30 years for non-claim of dividends
- Requirement of dividend declaration for computing non-claim period
