BAI MANGU Vs. BHARATKHAND COTTON MILLS CO LTD

JUDGEMENT

(1.) This is an application for leave to appeal to the Privy Council from the decision of the High Court after taking accounts in pursuance of the directions given by their Lordships of the Privy Council.

(2.) The appeal to the Privy Council arose in connection with certain suits brought by one Kevaldas and his family and subsequently one Tulsidas to enforce certain deposit receipts given by the company on October 31, 1911. Kevaldas alleged that he agreed with the company to have preference shares allotted to him to the extent of the face value of the debts owing by the company to him and his nominees represented by the amount of the deposit receipts, with accrued interest and some addition to current account which was incurred between October 81, 1911, and the actual date of his resignation, The company contended that there was no binding agreement in that behalf and that in any event there was due to the company a sum exceeding the amount of the receipts and that no money was due to him on the cross claim of the company.

(3.) The Subordinate Judge found in favour of Kevaldas that there was a binding agreement to allot preference shares in satisfaction of the debt substantially represented by the deposit receipts and decreed specific performance accordingly. The High Court found against Kevaldas on both the points. The Privy Council held that at most the alleged contract with reference to the preference shares was mainly to satisfy a just claim, and if Kevaldas by reason of the cross claim had really nothing due to him, he was not entitled to the issue of preference shares, and inasmuch as the balance was in favour of the company, the suit failed.