9911796707
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Issues:
1. Whether the respondent is a shareholder in the bank and can be put on the list of contributories. 2. Whether the respondent's actions and communications with the bank indicate his status as a shareholder. 3. Validity of the allotment of shares to the respondent. 4. Validity of the appointment of directors Gaya Parshad and Abaid Hussain. 5. Application of Section 86 of the Companies Act in relation to the appointment of directors. 6. The respondent's liability to pay the share money due to the liquidator. Analysis: 1. The main issue in this case was whether the respondent, Chaudhri Janwai Narain, was a shareholder in the bank and could be listed as a contributory. The liquidator appealed against the District Judge's order, arguing that the respondent should be held liable to pay the amount required by the liquidator. 2. The facts presented indicated that the respondent had applied for shares in the bank, consented to act as a director, and had various interactions with the bank, such as attending meetings and receiving notices. The liquidator contended that these actions demonstrated the respondent's status as a shareholder and that he should be estopped from denying it. 3. The liquidator argued that the respondent's application for shares, accompanied by a letter consenting to act as a director, constituted acceptance of an offer by the company, making him a shareholder even without a formal allotment. The absence of a prospectus was cited to support this argument. 4. The validity of the appointment of directors Gaya Parshad and Abaid Hussain was also contested. The liquidator claimed that the directors were validly appointed, with evidence supporting their roles and actions within the company. 5. Section 86 of the Companies Act was invoked to cover any defects in the appointment of directors, providing a legal basis for the validity of the resolutions passed by the directors. The application of this section was crucial in determining the legal standing of the directors and their decisions. 6. Ultimately, the court found in favor of the liquidator, ruling that the respondent was indeed a contributory and liable to pay the share money due. The court upheld the liquidator's arguments regarding the respondent's actions and the validity of the appointment of directors, emphasizing the respondent's receipt of notices and his failure to repudiate his shareholder status earlier. In conclusion, the judgment favored the liquidator's position, holding the respondent accountable as a contributory and ordering him to pay the share money owed. The court's decision was based on a thorough analysis of the respondent's interactions with the bank, the legal implications of his actions, and the application of relevant provisions of the Companies Act.
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