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Issues:
- Liability of the petitioner as a contributory to the company in liquidation. - Claim by the petitioner to set off dividends against the amounts due from him as a contributory. - Interpretation of relevant provisions of the Companies Act regarding the rights of contributories. Analysis: The judgment by FALSHAW, J. pertains to a case where the petitioner, as the executor of an estate, was listed as a contributory to a company in liquidation for unpaid shares. The petitioner, Rajeswar Parshad, was held liable for Rs. 2,500 plus interest for 100 shares in the company. The shares were originally held by Rai Bahadur Lala Banarsi Das, and after his death, the petitioner was appointed as the executor. However, there were delays in claiming dividends on the shares, and the petitioner's name was entered in the register of members only in 1951. Regarding the claim to set off dividends against the amounts due, the petitioner argued that he should be allowed to set off the dividends accrued on the shares against his liability as a contributory. The company opposed this claim, stating that forfeited dividends before a certain date could not be claimed, and no interest could be demanded from the company as per the articles of association. The petitioner relied on Section 156(1)(vii) of the Companies Act to support his claim for set off. However, the court found that the provisions of the Act did not support the petitioner's argument. The court noted that the purpose of the relevant section was not to provide relief to contributories but to impose further hardship on them. It was clarified that contributories could only claim sums due to them on account of dividends or profits after all company debts were settled. In conclusion, the court held that the petitioner could not be granted the relief sought, and his name would remain on the list of contributories representing deceased persons. The judgment did not award costs to either party, leaving them to bear their own expenses.
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