PREM BEHARI LAL Vs. SBBILLIMORIA AND CO

JUDGEMENT

(1.) This is an appeal from an order made by the District Judge, in the exercise of his original jurisdiction, under Section 215 of the Companies Act of 1914, in the voluntary liquidation of Shandell Brothers & Company, Limited, Cawnpore, at the instance of the liquidators, Messrs. Billimoria & Co., holding one Prem Behari Lal, who is really Shandell Brothers, and the original vendor to the Company, liable for the sum of Rs. 30,000. The matter does not appear to have been satisfactorily argued before the learned Judge, whose attention was not called to the existing state of the law upon the main question which arises, and it will be simpler to treat the matter in our judgment as though the application was made to us, in other words, in the nature of a re-hearing.

(2.) The application made by the liquidators in writing, dated the 20 of December 1924, is not a satisfactory method of stating the real nature of the question which the Court was asked to decide. Shortly stated, without reference to other somewhat unusual points which were argued before us, it is that the appellant, Prem Behari Lal, having been a signatory to the Memorandum of Association to the extent of three thousand shares of the face value of Rs. 10 each, was liable as a contributory in the sum of Rs. 30,000, the said shares being unpaid, with the further allegation that it would be just and also beneficial to the interests of the creditors (a statement which of course, cannot be denied) that Prem Behari Lal should be made to pay the amount.

(3.) One of the objections raised by Prem Behari Lal was that the voluntary liquidation was invalid and that the liquidators had no title. The learned Judge decided that point against Prem Behari Lal. We are told that the question is raised in other appeals which are pending before this Court. The matter has not been argued before us and we express no opinion about it, assuming for the purpose of this case that the liquidators were properly appointed.