AMAR NATH Vs. KARNAL ELECTRIC SUPPLY CO LTD

JUDGEMENT

(1.) In Civil Original No. 181 of 1951 Mr. Amar Nath Goela and Mr. Ram Nath Goela apply that Mr. Harish Chander Bhatnagar, Official Liquidator of the Karnal Electric Supply Company, Limited, may be directed to pay them 50 per cent of the share-money with interest at 9 per cent per annum from the 15th of October, 1951, to the date of payment with costs. Briefly summarised the facts of the case are these. Mr. Amar Nath Goela holds 220 shares bearing Nos. 201-300, 636-735, 866-875 and 1344-1353 of the Company, while Mr. Ram Nath Goela holds 115 shares bearing Nos. 301-350, 556-565, 626-635, 1219- 1243, 2177-2191 and 1906-1910. In the liquidation proceedings Mr. Amar Nath Goela and Mr. Ram Nath Goela have been placed on the list of contributories by the Official Liquidator of the company.

(2.) On the 28th of September, 1951, I directed the Liquidator of the Company to pay 50 per cent of the share-money to the contributories. In the present proceedings the applicants maintain that they have not been paid 50 per cent of the share-money in accordance with the order passed by the Court on the 28th of September, 1951.

(3.) In the answer put in by the Liquidator it is said that the payments have been withheld because of the pendency of proceedings against Mr. Amar Nath Goela, ex-Managing Director of the Company, under Section 235 of the Indian Companies Act. Indeed, it is maintained that the company has a lien on the share-money under Clause 43 of the Memorandum and Articles of Association of the Company. Clause 43 reads: "The Company shall have a first and paramount lien upon all shares (whether fully paid or not) registered in the sole name of any member or jointly with other persons, end also on all dividends or other sums of money due to such member, for his debts, liabilities and engagements to or with the Company, whether joint with other persons or not, and notwithstanding that the time for payment, discharge or fulfilment thereof has not actually arrived."