MANSUKHLAL DHANJI VORA Vs. JUPITER AIRWAYS LTD

JUDGEMENT

(1.) THIS suit is filed by 16 plaintiffs as sharesholders of the 1st defendant company on their own behalf as well as on behalf of all other shareholders of the 1st defendant company, except defendants Nos. 2 to 12. According to the plaint, the 1st defendant company was incorporated on July 13, 1946, for carrying on business of aerial transport, and by the company's memorandum dated July 12, 1946, the capital of the 1st defendant company was two crores of rupees dividend into twenty lacs ordinary shares of Rs. 10 each.

(2.) IN paragraph 2 of the plaint, it is stated that in June 15, 1946, the 1st defendant company issued forms of application for shares of the 1st defendant company to certain share- brokers named in the paragraph "with the intention that the forms may be used by members of the public for applying for shares". It is then stated that the same were issued without any prospectus and that the 1st defendant company had not at that time even filed a statement in lieu of prospectus with the Registrar of Joint Stock Companies. The applicants for the shares forwarded Rs. 2-8-0 per share with their applications as application moneys in respect of the shares.

(3.) THEREAFTER the plaint states that between September 3, and September 5, 1946, the 1st defendant company made allotment of its shares to the applicants including the plaintiffs and intimations thereof were sent out from September 10 to September 12, 1946, calling upon the applicants to pay a further sum of Rs. 2-8-0 per share as allotment moneys.