R K.MALHAN Vs. JOHN TINSON

JUDGEMENT

(1.) Before examining the questions, involved in the two Execution Petitions, a brief narration of events, prior thereto, is necessary. Civil Suit No.1 of 1973 was filed by Mrs. Surjeet Malhan whereas Civil Suit No. 2 of 1973 was filed by her husband B.K. Malhan. In the suit filed by Mrs. Malhan, M/s, John Tinson and Co. was im -pleaded as defendant No.1 whereas R.D. Bhagat, Mrs. Salochna Bhagat and B.K. Malhan were added as defendants No. 2, 3 and 4 respectively. In Civil Suit No. 2 filed by B.K Malhan, defendant No. 4 in the earlier suit, Mrs. Malhan was not unleaded. The two suits were consolidated and were dismissed by a common judgment by this Court vide judgment and decree dated March 4, 1985.

(2.) In the two suits it was alleged by the plaintiffs that M/s. John Tinson and Co. had its registered office at Solan as a Private Ltd. Company In the year 1946 there was some change in the Company in sequence of which both the plaintiffs alongwith their family members and other relations came to acquire all the shares and B K. Malhan became the Managing Director. As per plaintiffs, there were certain financial crisis for which money was required as additional working capital.

(3.) In the course of events, R.D. Bhagat, defendant, who desired to set up his business in Delhi, was looking for some business premises and after certain negotiations, an agreement is said to have been arrived at between the two on September 11, 1970. In sequence, R.D. Bhagat acquired effective representation on the Board of Directors. Both the plaintiffs were desired by him to pass on their entire share -holdings which were handed over. The terms and conditions in respect of the sale price were to take place on September 12, 1970, Mrs. Malhan held 1500 ordinary shares out of which 900 shares were in her name and 600 shares held by her belonged to others In addition to this, she had 10 preferential shares also. According to her, her husband took from her the shares and blank transfer forms alongwith share -scripts and in sequence, were passed on to R.D. Bhagat.