SATBIR SINGH Vs. S C BUGG

JUDGEMENT

(1.) This appeal is directed against the judgment dated 13th November, 1980 passed by the learned Company Judge in CA No.138/78. The learned Company Judge has, in the aforesaid Judgment, narrated the facts in substantial details, and therefore, it may not be necessary to repeat the same all over again. To understand the controversy, only material facts may be noted.

(2.) The appellant, Sh.Satbir Singh, a former ruler of the erstwhile State of Jind and the respondent No.2 Smt. Inder Bir Kaur were husband and wife. The appellant had an estate at Bhimtal near Nainital. The estate comprised of a villa, a Site Bungalow called Rosery Cottage, Barracks and about 7 acres of land. The appellant and his wife Inder Bir Kaur formed the respondent No.3 company, called Rajbir Industrial Farms (Pvt.) Limited. As it was a husband and wife company and they were to be the beneficiaries in the event of success of the enterprise, the appellant gave licence of 7 acres land for development of orchard and the barracks for setting up the factory and Rosery cottage for being used by the Manager of the company who was called Administrator. Major S.C.Bugg who was the father of Smt. Inder Bir Kaur and father-in-law of the appellant was appointed as the Administrator and he was to use the Rosery Cottage for his residence as the Administrator. The object of the company was to develop an orchard in the said 7 acres of land and to set up a canning factory in the barracks by adjusting the barracks as a factory building and installing and running machinery.

(3.) It is in the balance sheet and Director's report that the factory was set up and orchard was planted and grown to maturity. There were matrimonial disputes between the husband and the wife. A winding up petition was filed by Smt.Inder Bir Kaur and the company was ordered to be wound up. The appellant, during the pendency of the winding up petition, sold the entire estate comprising of the Villa, Rosery Cottage, Barracks, factory and 7 acres of orchard land to Lakhanis (Sh.Mohan S.Lakhani and his wife Smt.Sati S.Lakhani) being respondents 4 and 5.