IN RE A.R.N. NARAYANAN CHETTIAR, PETITIONER, AR. KM. RAMANATHAN CHETTIAR Vs. OFFICIAL RECEIVER, HIGH COURT, MADRAS

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 Ex. P. 1 the letter which the applicant wrote to A. O. K. Krishnaswami on 15th April, 1949 - that at the time he took up these shares,'

(3.) ON 27th July, 1949 the Link Industries Ltd. executed a mortgage, Ex. P. 10, in favour of the Industrial Finance Corporation of India in order to secure an advance of Rs. 5,00,000, To the significance of some of the terms of document I shall refer later. But, at this stage, it is sufficient to say that it purports to be an English mortgage, and,