S.L. RAMANATHAN CHETTIAR Vs. DINASARI, LTD.

JUDGEMENT

(1.) 'Dinasari Ltd.,' now under liquidation, was started as a private limited Company in 1944. It was publishing two papers called "Dinasari" and "Kandipam". Its memorandum of association permitted it, among other things, "to carry on the business of... dealers in printing machinery, furniture, type, ink, paper etc. In an affidavit filed by the Official Liquidator and dated 29th. July, 1954, it is stated that the company was importing large quantities of news -reel and printing ink which it was using not merely for purposes of the papers it was publishing but also for sale on profit.

(2.) BY an order made in O.P. No. 96 of 1952 the company was ordered to be wound up.

(3.) TWO petitions have been filed in relation to the moneys thus realised. Application No. 4436 of 1954 is by one Narayana Rao, and his case is this. In January, 1951, in association with four of his friends he formed a syndicate for the purchase and sale of paper. In January, 1951, they purchased various quantities from "Dinasari, Ltd". A further two lots were purchased in February, 1951. Yet more lots were purchased on 31st March, 1951, 4th April, 1951, 10th April, 1951, 23rd May, 1951, 18th October, 1951 and 28th December, 1951. In his affidavit he stated: