1960 (1) TMI 15

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.... present dispute relates to 1200 of those shares each of the nominal value of Rs. 10. The shares were paid up to the extent of Rs. 7-8-0 each. On the 15th of August 1947 Shiv Ram Batta's name appeared on the registers of the company. Some time after partition an application was made to the company by Khushi Ram Erry who claimed that the shares had been purchased by him. The company replied that the shares had been forfeited, because the call of Rs. 1 per share in respect of them had remained unpaid. This call had been made before the 15th of August 1947. It transpired that Shiv Ram Batta had transferred these shares by delivering the share-scrips and blank transfer deeds to the Laxmi Commercial Bank Limited. The shares passed through anothe....

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....must be treated as holding the shares, and, as between him and the company, the company cannot raise the plea that he has parted with his interest in the shares and connot be treated as a shareholder. The articles of this company are quite clear on this point, and article 11 which has been quoted in the judgment of Chopra J. is in the following terms : "The company shall be entitled to treat the registered holder of any share as the absolute owner thereof, and accordingly shall not be bound to recognise any equitable or other claim to or interest in such share on the part of any other person save as herein provided." Again article 14 says : "Save as herein otherwise provided, the company shall be entitled to treat the registered holder o....

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....erms : "Where a company or a co-operative society has made any call upon a displaced person or a displaced bank in respect of any moneys remaining unpaid on any share held by him or it on the 15th day of August, 1947............." This may be, for the purposes of clarity, split up as follows : "Where a company .................... has made any call upon (a ) a displaced person .................... (b) in respect of any moneys remaining unpaid on (c) any share held by him on the 15th day of August, 1947,..........................". Therefore, in order to apply section 19, three things are necessary. The call must have been made from a displaced person and it must be in respect of shares which he held on the 15th day of August, 1947. Ther....