PIONEER ALKALI WORKS LIMITED Vs. AMIRUDDIN SHALEBHOY TYEBJI

JUDGEMENT

(1.) In the first suit the plaintiff company claim to recover from the defendant a sum of Rs. 3,058-7-7 with interest thereon alleging that the said amount is due by the defendant as the shareholder in the plaintiff company in respect of the third call alleged to have been made by the plaintiff company. The only issue in the suit is whether the call was legally made and is binding on the defendant under the articles of association of the company.

(2.) There was one resolution passed by the directors making the second and the third calls. That resolution is as follows:- Resolved that the second (or the first as the case may be) call be made on June 30,1922, and the third (or the second as the case may be) call be also made payable two months after that date.

(3.) Art. 38 of the articles of association provides for the making of calls in the following terms :- The board may, from time to time, make such calls upon the shareholders in respect of all moneys for the time being unpaid on their shares as the board think fit, and every shareholder shall be liable to pay the amount of every call to the persons, and at the time and place appointed by the board; provided that no amount shall be called up in respect of any share to an extent in excess of the amount called up in respect of the rest of the issued or allowed shares for the time being.