1958 (8) TMI 34

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....ga Union Ltd., which went into liquidation. The official liquidator reported to the court that there was nothing to manage and asked for direction to sell the book debts. This permission was accorded. The plaintiff became the highest bidder for Rs. 15. The defendant was also the unsuccessful bidder at that auction. The defendant was one of the promoters of the society. He had purchased 101 shares but in this case what happened was that he had not remitted even a sum of Rs. 5 which according to the articles of association was to be paid towards every share at the time of the application, the balance being payable after allotment. In fact there is a mere statement of memorandum that 101 shares had been allotted to the defendant. Subsequently,....

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....I am of the same opinion as both the courts below. Firstly, I am bound by the findings of fact of both the courts below. Secondly, turning to the question whether this amount for which the suit has been laid is call money or not there cannot be any slightest doubt that it is call money from a contributory who had applied for 100 shares. On that conclusion it follows that no suit will lie because it is now concluded by authority that call money does not constitute a book debt. A bench of this court in Pudukottai Ceramics Ltd. v. Sethu alias Ramanathan Chettiar [1956] 26 Comp. Cas. 166 , held that the right which the liquidator in the winding up of a company has against a contributory is a statutory right created by the Companies Act and not ....