HARIRAM AGGARWAL Vs. SCIENTIFIC INSTRUMENTS COMPANY LTD

JUDGEMENT

(1.) ADMIT . Respondents waive service. By consent heard forthwith.

(2.) APPELLANT had subscribed to the public issue of shares by Respondent No.1. He has been allotted 500 shares in respect of which he has paid the allotment money. The shares are of the face value of Rs.10/-. The Respondent No.1 pursuant to a resolution of the Board of Directors made a call in respect of the balance amount of Rs.5/- to be paid on or before 30th April, 1997. In terms of further resolutions of the Board of Directors, the said time was extended. Thereafter by resolution of the Board of Directors dated 4th July, 1997 it was resolved to issue notice of forfeiture on shareholders who had not remitted the balance allotment money.

(3.) IN so far as the present appeal is concerned, the plaintiff by Notice of Motion had sought various interim reliefs. It may be mentioned as already stated that as the plaintiff and others similarly situated had not paid the call money the Board of Directors by resolution had taken steps for forfeiture of the shares allotted to the plaintiff and others similarly situated. The present suit has been filed by the plaintiff in a representative capacity and leave has been granted in terms of Order I Rule 8 of the Code of Civil Procedure. By an order dated 28th August, 1997, the trial Court held that there was a prima facie case in favour of the plaintiff to challenge the validity of the call money notice and also notice for forfeiture of shares. The trial Court thereafter granted adinterim injunction in terms of prayer (a) to the plaintiff and other shareholders. The plaintiff and other shareholders were, however, directed to deposit their call money in the Court. The plaintiff was directed to deposit the call money within a week i.e. on or before 8th August, 1998 and others were directed to deposit their call money within 15 days of the publication of the Notice under Order 1 Rule 8 of the Code of Civil Procedure.