UNIVERSAL TRANSPORT CO LTD Vs. S JAGJIT SINGH

JUDGEMENT

(1.) This case has arisen in connection with settling the list of contributories of the Universal Transport Company Limited at Jullundur in liquidation. One of the original director of the Company, Sampuran Singh, has objected t0 the inclusion of his name in the list in respect of 50 shares, which according to the records of the Company, he agreed to take at the time when the Company was being formed in which he was to become one of the original directors.

(2.) The original Memorandum and Articles of Association of the Company filed with the Registrar of the Joint Stock Companies show that Sampuran Singh along with six other persons signed at two separate and distinct places an undertaking to take 50 shares in the Company, and the Articles of Association show that this was the minimum qualification for becoming a director, and in Article 20 the name of Sampuran Singh is printed at No. 1 in the list of the first directors of the Company.

(3.) The case of Sampuran Singh is that he is not liable to be made a contributory in respect of 50 shares because at the time when he signed the Memorandum and Articles of Association the figure 50 was not written in the appropriate column and he had at the time stated that he had no intention of taking 50 shares. It also appears that in fact 50 shares were never allotted to him and his name does not appear in the list of persons to whom shares in the Company were allotted submitted in due course to the Registrar.