CALCUTTA STOCK EXCHANGE ASSOCIATION LTD Vs. STATE

JUDGEMENT

(1.) This is an application by a registered partnership firm called Srigopal Jalan & Co. for an order upon the Calcutta Stock Exchange Association Limited to file a return of allotment in the prescribed form giving all necessary particulars with the Registrar, Companies in respect of 70 forfeited shares re-issued and allotted by the Stock Exchange. The summons was taken out on the 29th June 1956 when the new Companies Act, 1956, had come into operation.

(2.) The application is based on Section 75 of the Companies Act, 1956 and is made under Section 614 of that Act. It raises an important question of principle which involves construction and interpretation of Section 75 of the Companies Act. Before proceeding to discuss law I shall briefly state the facts which are short and simple:

(3.) The applicant claims to be a member and shareholder of the Calcutta Stock Exchange Association Limited; Its case is that the company has from time to time forfeited 70 shares of Rs. 1,000/- each extinguishing the liability in respect of share capital paid up therein and that out of the said forfeited shares 65 had been originally issued for consideration other than cash and 5 for cash consideration. It also asserts that the said forfeited shares were reissued by the company as fully paid up shares for cash consideration of Rs. 1,000 each. It refers to the last balance-sheet of the 30th September 1955 in support of its contentions.