About Land Caveat

Under what circumstances can a person enter a caveat on a piece of land? The word 'caveat' is a Latin term which means 'let him beware'.
Here a shareholder of a Company entered caveat on lands which was about to be sold by the bank. The bank made an application to remove the said caveat.
The Court held that the Managing Director or shareholder of a Company had no right to enter caveat on the lands. It was held that the Company and the shareholders were two different identities. The lands were registered in the name of the Company.
The Court held that in order to determine whether a person has the right to enter caveat there are three steps to follow:(1) Whether the person has shown that he has a caveatable interest on the lands(2) After he shows that he has an caveatable interest, he must also show that there is a serious issue to be tried.He must state the reason for doing so, it must be a strong reason, if he can pass these two steps the next step to be considered by the Court is (3) whether the balance of conveniece or justice lies in favour of the caveat remaining on the register pending the disposal of the the case.
In this case the reason for entering the caveat was because the shareholder was dissatified with the price put up by the bank on the lands,they thought that it was below market value. But they failed to show strong evidence that the price was an undervalue.In this case the shareholder had never passed the first step.
The Court finally held that the shareholder had no right to enter the caveat.