RUSTAMJI CAWASJI Vs. GENERAL COTTON MILLS LTD

JUDGEMENT

(1.) IN this revisional application, the peitioners seek to challenge the order of the learned Civil Judge, Senior Division, Jalgaon, granting leave to the two opponents who are liquidators of General Cotton Mills Ltd. , to sue as paupers.

(2.) AS this is a pauper matter, the question of Court-fee is involved. The Government Pleader appears in the matter today as he cameto know of it. He waives notice and wants to appear in the case. I grant him permission to appear.

(3.) THE said Company viz. , Gendalal Cotton Mills Ltd. , stopped working on July 29, 1954, and a petition was presented for winding it up on the same day in the District Court. The order for winding up was made on November 3, 1954, and a liquidator was appointed. The loquidator was an Advocate of that Court. As he could not carry on the proceedings, he resigned on May 8, 1955. On June 6, 1955, the two opponents namely Opponent No. 1-A and B, were appointed joint liquidators. The petitioners are the trustees under a debenture trust deed created by the Company on December 31, 1953. Debentures were issued by the then directors of the Company with the sanction of the Controller of Capital issue. The liquidator filed the present application for leave to sue in forma pauperis on December 30, 1956. The sum and substance of their allegation was that the debentures were issued and the trusteed was executed as a result of collusion between the petitioners and the directors of the Company and that, therefore, the trustdeed was void and inoperative. The liquidators on that footing claimed possession of assets of the Company which were shown in the Schedules to the application. They also claimed a sum of Rs. 15,00,000 as past damages for the use and occupation in lieu of rent for the factory. The liquidators prayed that as they had not sufficient assets of the Company in their possession to pay the court-fees, they should be allowed to sue in forma pauperis. The court-fee payable is about Rs. 12,500.