1944 (9) TMI 13

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ER The plaintiff, Joti Prasad, sold certain shares that he held in the Scientific Apparatus and Chemical Works, Ltd., Agra, to R.C. Khandelwal, defendant 2, and the said sale was registered in the books of the company on 20th January 1942. After the registration of the said sale certain dividends were declared in October 1942. The dividend was paid sometime in the month of November to R.C. Khan....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d by the plaintiff of this agreement. On that ground the Court below held that the company had knowledge of this agreement and it was equally liable to the plaintiff and passed a joint decree against the company and against Mr. R.C. Khandelwal. R.C. Khandelwal has submitted to the decree. The company has filed this revision before me. It is urged on behalf of the company that the company was bo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in its share registers. In this case also, in the articles of association of the company, there are Arts. 143 and 145 which make the dividend payable to the person whose name is registered in the books of the company. I, therefore, am of the opinion that the lower Court was not justified in giving a decree to the plaintiff against the company. Though R.C. Khandelwal has not filed a revision, Mr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rivate agreement and the Court below has accepted that there was such a private agreement between the vendor and the vendee. The plaintiff's suit was, therefore, rightly decreed against R.C. Khandelwal. Mr. Sanyal on behalf of the plaintiff has urged that if there is no decree against the company and the dividend is not apportioned between the vendor and the vendee his client, the plaintiff ven....