Share allotment becomes binding only on communication to the applicant; absent notice, the applicant may revoke and recover payment.

A binding allotment of shares arises only when the allotment is not merely made but also communicated to the applicant. On the facts, the alleged intimation letter was not proved to have been sent, and the company's conduct did not show that the applicant had received notice before demanding repayment. Because communication was not established, the applicant could revoke the offer and recover the money paid for the proposed shares. The decree against the company was therefore set aside, and relief was granted for recovery of the amount with costs.

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Issues: Whether there was a valid and binding allotment of shares in the absence of communication of the allotment to the applicant, and whether the applicant was entitled to refund of the money paid for the proposed shares.

Analysis: A binding allotment requires not only an application and allotment, but also communication of the allotment to the offeree. On the facts, the alleged letter intimating allotment was not proved to have been sent, and the surrounding conduct of the company did not establish that the applicant had been informed before demanding return of the money. In the absence of such communication, the applicant retained the right to revoke the offer and seek repayment.

Conclusion: There was no valid allotment binding on the applicant, and the applicant was entitled to recover the amount paid.

Final Conclusion: The decree against the company was set aside and relief was granted to the applicant for recovery of the claimed amount with costs.

Ratio Decidendi: An allotment of shares becomes binding only upon communication of the allotment to the applicant; until then, the offer to purchase may be revoked and the consideration recovered.

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