OFFICIAL LIQUIDATOR Vs. SULEMAN BHAI KACHHI

JUDGEMENT

(1.) THE present appeal arises out of proceedings of winding up started as a result of a petition filed by some of the share -holders M/s Sardar Murar Rao Jadhava and others on 19 -5 -1947 in the High Court of Dewas (Junior) State. This State has now merged in the State of Madhya Bharat. During the course of these proceedings Mr. A. S. Patwardhan was appointed an Official Liquidator. On 8 -12 -1947 the Official Liquidator caused to be published in the Dewas 'Gazette' a notice addressed to the contributories of the Company calling upon them to show cause why they should not be taken to have purchased the shares mentioned against their names. Respondent Suleman Kachhi was mentioned as one of such persons with 200 shares shown against his name as having been subscribed by him.

(2.) THE proceedings were transferred for the purpose of expedition in the District Court and here the said Haji Suleman Kachhi submitted a reply contending that he was a contributory in respect of only 21 shares and not 200 shares as mentioned in the 'Gazette' notice aforesaid. The District Judge, Dewas, who heard the matter accepted the contention and held that although the respondent Haji Suleman was a subscriber to the memorandum of the Company yet he had surrendered his 200 shares by his letter Ex. P/2 dated 14 -10 -1943 and this was accepted by the directors in their meeting dated 24 -11 -1953 Ex. P/3 -B and a fresh allotment of only 21 shares was made and on that basis further steps had been taken.

(3.) IN order to appreciate the actual point of controversy involved in this appeal it will be useful to refer to the circumstances leading to the incorporation of the company and steps taken by the directors of the Company consequent on such incorporation.