BHAGWANDAS FARG Vs. CANARA BANK LTD

JUDGEMENT

(1.) This revision petition by the defendant arises out of a suit for recovery of money filed by the plaintiff Canara Bank before the Munsif Magistrate, West Hyderabad.

(2.) The facts leading the litigation between the parties are these: G. Raghunathamall Bank Limited (hereinafter called the 'Transferor Bank') was a public limited banking company incorporated under the Hyderabad Companies Act (IV of 1320, Fasli). The authorised capital of the said Transferor Bank was O. S. Rs. 1,00,00,000. The issued capital of O. S. Rs. 25,00,000 was divided into 25000 ordinary shares of O. S. Rs. 100 each of which O. S. Rs. 25 was payable on application and O.S. Rs. 25 on allotment and the remaining amount of each share as and when it might be called up.

(3.) The defendant applied for 25 shares and deposited Rs. 625 with the application. He was allotted only 12 shares. A sum of Rs. 300 was accordingly appropriated towards the amount payable on allotment in respect of the shares allotted to him.