MANEKLAL MANSUKHBHAI Vs. SURYAPUR MILLS CO LTD

JUDGEMENT

(1.) The plaintiff company by its liquidator brought this suit in the High Court on November 24, 1926, against the defendant as its former shareholder based on a claim under Art. 28 of Table A which applied to this particular company, viz.: A person whose shares have been forfeited shall cease to be a member in respect of the forfeited shares, but shall, notwithstanding, remain liable to pay to the company all moneys which, at the date of forfeiture) were presently pay if and when the company in respect of the shares, but his liability shall cease if and when the company received payment in full of the nominal amount of the shares.

(2.) The forfeiture in the present case was on March 11, 1922. Accordingly, at the outset a question arises as to what Art. of the Indian Limitation Act applies, because if, for instance, Art. 115 applies, as has been found by the learned trial Judge, then this suit is barred unless the company can claim exemption for certain periods under the Indian Limitation Act.

(3.) The company contends in the first place that the proper Art. to apply is not Art. 115 but Art. 120, or alternatively Art. 116. That is one part of the case. The other part is as regards certain periods which the learned Judge has allowed to the company under Section 14 of the Indian Limitation Act, amounting in all to some twenty months and thirteen days. He has consequently arrived at the conclusion that allowing those periods to the company the suit is within time. He, accordingly, passed judgment in favour of the company. The defendant appeals.