E D SASSOON AND CO LTD Vs. KAPATCH

JUDGEMENT

(1.) Plaintiff No. 1, a private limited company, purchased a large number of shares of the David Mills Co, Ltd., and after receiving their vendors share certificates and transfer forms applied for transfer of the shares in the David Mills Company register to the names of their nominees, plaintiffs Nos. 2 and 3. The directors of the company, however, refused to accept the transfers, and the plaintiffs now desire to alter the articles of association so as to limit the discretion of the directors with the object of eventually becoming registered shareholders.

(2.) Among the shares so purchased by the first plaintiff company are seventeen shares of which the defendant is the registered holder, and the plaintiffs ask in this suit for a mandatory injunction requiring the defendant to vote according to the plaintiffs wishes and to sign a proxy form in favour of the plaintiffs.

(3.) The plaintiffs contention is that the defendant is in the position of a trustee of the shares for them. This seems both according to Indian law and the English authorities to be correct.