JANDA RUBBER WORKS LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) On 7th May 1945, Thomas Janda Purchased a factory known as "Universal Rubber Works" and on 13th July 1945, he and his wife Mary Janda floated a private limited company with its registered office at Lahore under the name and style of "Janda Rubber Works Limited." It is alleged that this registered office of the company was transferred to Amritsar on 2nd July 1947, but before this, i.e. on 31st July 1945, the Janda Rubber Works Limited resolved to take over from Thomas Janda the factory known as the Universal Rubber Works for a consideration of Rs.5,50,000 and on 31st December 1946, shares worth Rs.4,01,000 were issued to Thomas and Mary Janda in lieu of the part price of the Universal Rubber Works, and it is now claimed that by virtue of this the Universal Rubber Works belonged to the Janda Rubber 'Works Limited (now in voluntary liquidation), but no deed of sale or document evidencing the:transfer of the property from Thomas Janda to Janda Rubber Works Limited has been proved to have been executed or brought to our notice.

(2.) On 14th January 1949, so the liquidator Alleges and this is stated in the affidavit of the Deputy Custodian also, Mr. and Mrs. Janda made an affidavit in the High Court of Bombay in certain proceedings relating to overdraft Account of Universal Rubber works Bombay with the Exchange Bank of India and Africa Limited now in liquidation. Therein it was declared that the Universal Rubber Works was a private property of Mr. and Mrs. Janda and a liability for an overdraft of Rs.8,00,000 was accepted by them. He is also alleged to have stated in that affidavit that the resolutions mentioned above, dated 31st July 1945, were never acted upon. On 16th January 1949, the Bank made transfer entries showing that the Universal Rubber Works was the property of a private partnership.

(3.) On 17th April 1949, a resolution for the winding up of the company was passed and sub-sequently an order for supervision of this Court was passed on 19th August 1949, and on 1st September 1949 the liquidator made an application in this Court under S.216 and S.222 of the Companies Act in which he alleged that the Collector of Bombay as Deputy Custodian of evacuee property without notice to the liquidator or leave of this Court had declared and sealed the factory - Universal Rubber Works - and was threatening to take possession of all the company's property, that as the registered office of the 'company was within the Dominion of India and the company was being wound up under the supervision of this Court, even if the share-holders were evacuees no proceedings could be taken by the Collector without leave of the Court. He, therefore, prayed for the issue of an injunction to the Collector of Bombay to remove his seal from the factory - Universal Rubber Works - and not to take possession of any other properties of the company which were in lawful possession of the liquidator not, without in the first instance, obtaining leave of this Court.