RUPAK LIMITED Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) THIS letters patent appeal arises out of a judgment dated November 8, 1974, in Company Case No. 3 of 1971, passed by a learned single judge.

(2.) THE short question for decision is : " Whether Rs. 2,50,000 received by Rupak Co. Ltd. (hereinafter referred to as "the company ") is the share capital or not -

(3.) THE appellant, Rupak company, is registered under the Companies Act, 1956 . There were two groups of shareholders in the aforesaid company, namely, Misra group and Singh group. Misra group had genuine shares of Rs. 1,00,000. Misra group also paid Rs. 2,50,000 to the company. It is this amount which is under dispute. In this connection Money Suit No. 35 of 1954 was filed by Misra group. The company also filed counter -title Suit No. 55 of 1933. All these suits were tried together by Sri T.P. Choudhary, Additional Subordinate judge, Patna. In that case, it has been held that Rs. 2,50,000 was received by the company. No shares were issued in respect of Rs. 2,50,000. The learned Subordinate Judge held that in view of the fact that this amount was received by the company, the company should return this J amount to Misra group with interest. According to the finding of the civil court, it was clear that no share capital was issued fey the company in respect of Rs. 2,50,000.