JAMSHEDJI NAOROJI GAMADIA Vs. MAGANLAL BANKEYLAL AND CO

JUDGEMENT

(1.) The plaintiffs filed this suit seeking to recover the sum of Rs. 26,671-9-0 from the first defendant, and praying for a declaration that the pledge of the shares mentioned in Ex. E to tie plaint was binding on the second defendant, and that the second defendant had no right to prohibit the transfer of the said Chares to the name of the plaintiffs. They also prayed that they might be authorised to sell the shares mentioned in Exh. D and appropriate the net proceeds towards part satisfaction of the decree to be passed in their favour.

(2.) Plaintiffs alleged that the first defendant had borrowed certain amounts from them on security of certain shares. On April 12, 1921, it was found that Rs. 38,000 were due by the first defendant and the first defendant passed a writing to the plaintiffs whereby he promised to pay the plaintiffs the said sum of Re. 38,000 on demand with interest, and gave details of the shares which were to remain as security. Thereafter the plaintiffs had received a certain amount of interest on certain shares and also sold certain shares under the instructions of the first defendant. On making up the account the amount of Re. 26,671-9-0 was found due to the plaintiffs, against which the plaintiffs had in their possession the shares mentioned in Exh. D to the plaint, out of which fourteen shares of the Emperor Edward Mills and one share of the Nagpur Mills stood in the name of the second defendant. The plaintiffs had in their possession the share certificates and transfer forma signed by the second defendant, who had given notice to the companies concerned not to transfer the shares to any other person. The first defendant had failed to pay the sum of Rs. 26,671-9-0, and hence the suit was filed claiming the relief abovementioned.

(3.) The first defendant filed a written statement asking for an account but at the hearing he admitted the claim.