NAVNITLAL CHABILDAS Vs. SCINDIA STEAM NAVIGATION CO LTD

JUDGEMENT

(1.) In this suit the plaintiff, a shareholder in the first defendant company, sues, on behalf of himself and all the other shareholders in the company except those who are the defendants, the company and the directors of the company, praying for a declaration that a resolution of the company to the effect that the qualification of a director shall be the holding of the shares in the company of the nominal value of Rs. 75,000 instead of Rs. 30,000 moved before the sixth ordinary general meeting of the company hold on December 12, 1925, and the whole proceeding in respect thereof is ultra vires and illegal, and for other consequential reliefs.

(2.) The facts are shortly as follows :- By a notice dated November 24, 1925, the agents of the first defendant company, by order of the board of directors, called the sixth ordinary general meeting of the company, which was to be held on December 12, 1925, and the business to be transacted was notified in the said notice.

(3.) After the said notice was issued, notices were received by the agents and directors of the defendant company from two shareholders Ardeshir R. Subedar and R.C. Sutaria to the effect that they intended to propose a certain resolution altering the qualification of a director as laid down in Art. 90 of the articles of association of the company. Notice of this resolution was given by the defendant company by advertisement in The Bombay Chronicle, The Indian Daily Mad, The Jam-e Jamshed, The Bombay Samachar, and The Sanj Vartaman on December 4, 1925,