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of <h1>Past members liable for company assets in liquidation under Section 156(1) Indian Companies Act. Six-year limitation period clarified.</h1> <h3>Jagraon Trading Syndicate Ltd. Versus Nanakchand Roshan Lal</h3> The court held that past members are liable to contribute to a company's assets in a liquidation scenario under Section 156(1) of the Indian Companies ... Winding up - Liability as contributories of present and post members Issues:1. Interpretation of Section 156(1) of the Indian Companies Act regarding the liability of past members in a winding-up scenario.2. Determination of the time limitation for liquidators to recover unpaid calls from shareholders in a liquidation proceeding.Detailed Analysis:1. The judgment pertains to three appeals involving the Jagraon Trading Syndicate, Limited, where shares were forfeited due to non-payment of the first call, followed by the company going into voluntary liquidation. The issue revolved around the liability of past members to contribute to the company's assets under Section 156(1) of the Indian Companies Act. The court noted that the liability of shareholders in a liquidation scenario arises as soon as the liquidation proceedings commence, imposing a new liability even on unpaid calls that may be barred by time. The court cited various legal precedents to support this interpretation, emphasizing that the liability under Section 156 is statutory and distinct from the company's ability to recover such amounts. The judgment highlighted that the liability of past members continues despite the lapse of time, as long as the liquidation proceedings are ongoing.2. The second issue addressed in the judgment pertained to the time limitation for liquidators to recover unpaid calls from shareholders. The court rejected the argument that the limitation period starts from the date of share forfeiture, citing a previous decision that established a six-year limitation period from the date of default for such claims. By relying on legal precedents and the provisions of the Indian Companies Act, the court determined that the liquidators' applications were timely and allowed the appeals with costs throughout. The judgment clarified the application of the Indian Limitation Act to claims by liquidators in recovering unpaid amounts from shareholders in a liquidation scenario, reinforcing the statutory liability imposed by Section 156(1) of the Companies Act.
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