MOTILAL KANJI AND CO Vs. NATVARLAL MJHAVERI

JUDGEMENT

(1.) In this ease the Hatim Mills ceased to work in February 1924 and went into voluntary liquidation, and on June 13, 1928, the learned District Judge on hearing the application of one Dhirajlal Bhimbhai referred the scheme, which was propounded by the present appellants Motilal Kanji and Co., to the creditors to ascertain whether the modifications suggested were acceptable to the statutory majority after first obtaining the approval of the present appellants to those modifications.

(2.) A meeting was held on July 8, 1928, and on July 21 one of the official liquidators, Mr. N.M. Jhaveri, made a report Exhibit 58. On August 5, Dhirajlal made an application to sanction the scheme as modified. The Court declined to give sanction on the ground that there was not the requisite statutory majority as required by Section 153 of the Indian Companies Act. Dhirajlal filed First Appeal No. 556 of 1923, but died during the pendency of the appeal, and his heirs not having been brought on the record the appeal has abated.

(3.) The present appeal is by Motilal Kanji and Co., who propounded the scheme. It is contended on behalf of the respondents that an appeal does not lie under Section 202 of the Indian Companies Act at the instance of the present appellants who are neither creditors nor contributories and who have no present interest in the company but only a prospective interest to be appointed secretaries and agents if the company is made to stand on its legs as a result of the modified scheme.