VAISHANAV DASS OTHERS Vs. FAQIR CHAND

JUDGEMENT

(1.) This is an application under Article 226 of the Constitution. Herein the petitioners pray that this Court may be pleased to declare that the order made by the Government on July 29, 1957 under sub-section (4) of Section 89 of the Companies Act, 1956, to be hereinafter referred to as the "Act' is null and void or in the alternative, quash the same for the reasons mentioned in the petition.

(2.) The petitioners are shareholders of Nav Samaj, Ltd., a company registered under the Indian Companies Act, 1913. (Respondent No. 4). Petitioner No. 1 holds 400 ordinary shares of the said company. Petitioners 2 to 5 hold five shares each, therein. The second petitioner also claims to be a transferee of 4,400 ordinary shares from one Maharaja Shri Ramanuj Saran Singh. But the said transfer has not yet been recognised by the aforementioned company

(3.) The said company was incorporated on or about 5th May, 1947. It has an authorised capital of rupees ten lakhs divided into (a) 38,000 ordinary shares of Rs. 25 each and (b) 25,000 deferred shares of Rs. 2 each. Chit of the authorised capital, the total subscribed and paid-up capital of the company is made up by the value of (a) 31,527 ordinary shares of Rs. 25 each and (b) 25,000 deferred shares at Rs 3 per share. The value of the ordinary shares subscribed is Rs. 7,88,175 and that of the deferred shares is Rs. 50,000. The deferred shares are also called as the founder's shares. All these deferred shares were allotted to only five persons, namely.