LINK INDUSTRIES LIMITED Vs. STATE

JUDGEMENT

(1.) THE Link Industries Ltd., a public limited company incorporated in 1946, was ordered to be wound up on 8th February, 1956. In 1947, however, it was a going concern. On 13th August, 1947, the company issued 50, 000 shares of the nominal value of Rs. 10 each, and Ramanathan Chettiar, the applicant herein, took up 36, 555 shares on each of which he paid Rs. 5. At this time the Link Industries Ltd. was being managed by another limited liability company called Factors Ltd. of which A. C. K. Krishnaswami was managing director.

(2.) THE case of the applicant is - here I quote from Exhibit P. 1, the letter which the applicant wrote to A. C. K. Krishnaswami on 15th April, 1949 - that at the time he took up these shares,

(3.) ON 18th April, 1949, Krishnaswami replied to Ramanathan Chettiar by Exhibit P. 3, in which he stated :