TaxTMI 
TaxTMI 
1932 (6) TMI 10
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....d plaint the plaintiff was described as Bo Hein, President of the Sun Main Society, on behalf of himself and all the other members of the Society, Zayit Quarter, Tavoy. The learned Sub-Divisional Judge of Tavoy dismissed the suit upon the ground that if fell within the ambit of section 4, Companies Act, and that the Society being unregistered the suit could not be maintained. On appeal the learned District Judge reversed the decision of the Sub Divisional Court, and remanded the case to be heard and determined on the merits holding that the Society did not fall within the ambit of section 4, Companies Act. 'The question is whether the Society offends against section 4, sub- section (2) which runs as follows: "No company, association or par....
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....d be spent in charity." Now, Sir George Jessel, M.R., in In re Arthur Average Association for British, Foreign and Colonial Ships observed, at page 546: "If you come to the meaning of the word " gain " it means acquisition. It has no other meaning that I am aware of. Gain is something obtained or acquired. It is not limited to pecuniary gain. We should have to add the word "pecuniary" so to limit it. And still less is it limited to commercial profits. The word used, it must be observed, is not "gains" but "gain," in the singular. Commercial profits, no doubt, are gain, but I cannot find anything limiting gain simply to a commercial profit. I take the words as referring to a' company which is formed to acquire something, or in which the in....
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.... would not receive any part of the funds in the possession of the company. In the present case however the facts are different. The members of the Society under the resolution of 25th April, 1928, became under an obligation to pay one or more annas a day as a permanent contribution to the funds of the Society for three years. It was with the proceeds of these contributions that the Society carried on its business of money-lending. What was the object for which the gains resulting from the money-lending business were acquired? In my opinion partly to recoup the sums which the members had contributed to the Society for three years, and partly in order that the Society should be in a position to expend the surplus of the gains from the busine....