ARYAN LIFE ASSURANCE SOCIETY LIMITED Vs. STATE

JUDGEMENT

(1.) THIS is a petition for winding up of the Aryan Life Assurance Society, a limited company incorporated under the provisions of the Indian Companies Act, 1913.

(2.) THE liability of the members is limited by guarantee. Clause 5 of the memorandum of association is as follows : Every member of the Society undertakes to contribute to the assets of the Society, in the event of the same being wound up during the time that he is a member, or within one year thereafter for payment of the debts and liabilities of the Society contracted before the time at which he ceased to be a member, and the costs, charges and expenses of winding-up the same and for the adjustment of the rights of the contributories amongst themselves, as may be required, not exceeding Rs. 25.

(3.) A preliminary objection has been raised on behalf of the company and certain policy-holders who oppose the petition. The objection is that the petition is not maintainable as out of eleven petitioners two, viz. petitioners Nos. 6 and 9, had assigned their policy before the date of the petition, and the policy of petitioner No. 7 is alleged to have lapsed on March 15, 1937, and further the policy of petitioner No. 10 is also alleged to have lapsed before the date of the petition. It was conceded by all parties that the objection was a fit one to be tried as a preliminary issue, as, in the event of my holding that the petition is not maintainable, further costs of hearing the petition on the merits would be saved.