MOTILAL HIRABAI Vs. BAI MANI

JUDGEMENT

(1.) This appeal arises out of proceedings in execution of a decree made by the Subordinate Judge of Ahmedabad on September 28, 1915, which was affirmed by the High Court of Bombay on June 26, 1917.

(2.) The circumstances that gave rise to this litigation are simple. It appears that one Acharatlal had purchased 48 shares of Rs. 1,000 each and 48 sub-shares at Rs. 500 each issued by a company which carried on business in Ahmedabad under the name of The Ahmedabad Ginning and Manufacturing Company. The purchase was made in the name of a person named Girdharlal Dalpatram. This Girdharlal was the nephew of a woman called Bal Gulab, who is said to have been under the protection of Aohnratlal. In the year 1883 a controversy arose between Acharatlal and Girdharlal as to the real ownership of the 48 Rs. 1,000 shares and the 48 Rs. 500 sub-shares. Acharatlal alleged that Girdharlal was only his benamidar and that in fact he was the real beneficial owner of the said shares. The contest was settled between Acharatlal and Girdharlal on July 28, 1883. On that date an agreement was entered into by which it was agreed the; 24 shares of Rs. 1000 each and 24 sub-shares of Rs. 500 each wore to be transferred to Acharatlal under certain conditions. The remaining 24 shares of Rs. 1,000 and the 24 Bub-chares of Rs. 500 were allowed to remain in the name of Girdharlal, subject to the following among other conditions:-- That during the lifetime of Achratlal and Gulab, Girdharlal should not sell or mortgage the same without their consent, (2) that out of the amount to be received by Girdharlal as the dividend in respect thereof (excluding such shares as might have been sold with their consent) he was to retain for himself Rs. 1,100 and hand over the balance, if any, to Acharatlal and Gulab or the survivor of them, and (3) that after the death of both of those persons the shares were to belong to Girdharlal absolutely.

(3.) Shortly after tie settlement Girdharlal appears to have got into financial difficulties and in September, 1888, Acharatlal advanced him Rs. 7,.500 without interest on the pledge by Girdharlal of five shares out of the 24 shares that had been allotted to him in his own right, consisting of Nos. 266-270 each of Us. 1,000 and five sub-shares of Us. 500 each corresponding thereto. These shares, which wore pledged to Achratlal, were transferred to his name as mortgagee or pledgee thereof. Achratlal died two years after. Before his death, on February 12, 1885, Achratlal appointed by his will certain trustees, five in number, to carry out the directions of his will; one of these trustees was Bai Gulab.