1984 (10) TMI 244

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....ration Limited, whereby the said Corporation underwrote preference shares of Messrs. [, Depro Foods Limited of Rs. 100 each for a total value of Rs. 3.6 lacs on which a dividend of 9.5% per annum was payable. The appellant who was apparently, at the relevant time, the Managing Director of Messrs. Depro Foods Limited,  executed an  agreement under which he guaranteed in his personal capacity the payment of the dividend income due in respect of the aforesaid shares to the said Corporation. It is not disputed that Messrs. Depro Foods Limited did not pay Rs. 1,96,961 representing the dividend payable to the said Corporation, and therefore the appellant became personally liable as Guarantor to pay that amount. lt seems that on the fail....

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....ght is founded in private agreement ? The other questions is: If the recovery is made by reference to clause (bb) of s. 98 of the Punjab Land Revenue Act, 1887 which speaks of:- "(bb) Dividend payable to the Government on 1. Cumulative Redeemable Preference Shares subscribed by or on behalf of the Government". Can that clause be employed for recovering dividend payable to Haryana State Industrial Development Corporation Limited ? Now there is no dispute that the appellant knowingly and deliberately entered into the Guarantee agreement, and is liable as Guarantor to make payment of the dividend due from Messrs Depro Foods Limited. Nor is it disputed that the amount due, with interest, stands at 2,02,166 in respect of the period endi....

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....er. Where a case is admitted to final hearing, the judgment of the High Court disposing of the appeal almost invariably sets forth the reasons for its decision; We think it desirable that even when a writ petition is dismissed in limine the High Court should set out its reasons, however briefly, for doing so, especially in those cases where the matter in controversy is the subject of judicial examination for the first time and has not been processed earlier by an inferior judicial or quasi  judicial authority. It is of some importance p that party should know from the court of first instance the reasons for an adverse decision received by it, for that promotes acceptance of the judgment and thereby ensures credibility and public  ....