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TMI Blog1935 (1) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ary, 1930, these shares were, however, forfeited on default of payment of the first call. On the 30th June, 1930, the syndicate went into voluntary liquidation. An application having been made by the voluntary liquidators and others to this Court, a supervision order was passed under Section 221 of the Indian Companies Act and the case was sent to the District Judge for further proceedings. The respondents were placed by the liquidators on list 'B' of the contributories and as they failed to pay the amounts due from them, the liquidators applied to the District Judge for a payment order. On notices being issued, the respondents contested their liability on various grounds and urged inter alia that the liquidators' applications were time-b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the liquidation proceedings start. As laid down in several authorities on the subject as soon as a company goes into liquidation, this section saddles the shareholders with a new liability in respect of unpaid calls and such unpaid calls are recoverable at the intance of the liquidators though barred by time and though the company could not recover them. (See Indian Companies Act by Khanna, page 250). Reference may be made in this connection to Jagannath Prasad v. U.P. Flour Oil Mills [1916] 1 LR 38 All. 347 , Sorabji Jamsetji v. Ishwardas Jugjiwandas [1895] 1 LR 20 Bom. 654 and Hansraj Gupta v. Dehra Dun Mussourie Electric Tramway Co., Ltd . [1933] 3 Comp. Cas. 207 (All.). In Jaggannath Prasad s case ( supra ) , a B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim was governed by Article 115. With all respect we may say that in face of the authorities referred to above we are not prepared to follow this decision. Even if the Indian Limitation Act applied to a claim like the present, it has been held by a Division Bench of the Punjab Chief Court in Harchand Rai v. Ranglal [1903] 70 PR 1903 , that the period of limitation applicable to a suit brought by a liquidator of a public company to recover the unpaid amount of calls from a shareholder is six years from the date of default under Article 120 of the first Schedule to the Limitation Act. We, therefore, hold that the applications of the liquidators were well within time and accordingly accept these appeals with costs throughout. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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