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TMI Blog1943 (12) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... here. We will first state the facts in appeal No. 137 of 1942. The plaintiff is a limited liability company. It was registered on the 3rd November 1932 with a nominal capital of Rs. 3,00,000 divided into 3,000 shares of Rs. 100 each. The object for which the company was formed was the supply of electricity to the town of Adoni. The appellant signed the memorandum of association as a subscriber for fifty shares but the articles of association do not state the date on which a subscriber has to make payment. In Alexander v. Automatic Telephone Co. [1900] 2 Ch D 56 the Court of Appeal held that, in the absence of any special agreement or article requiring a subscriber of the memorandum of association of a company to make some payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his shares was unlawful as the requirements of the articles of association have not been complied with. The District Judge found against the appellant on all the issues. Consequently he passed a decree for Rs. 5,000 due on the shares with interest at six per cent. from the date of suit. In his memorandum of appeal the appellant raised all the contentions to be found in his written statement but the only contention which has been pressed at the hearing of the appeal is the one that the forfeiture of the shares was unlawful. The company has filed a memorandum of cross-objections as it contends that the learned District Judge erred in not allowing interest from the date of the respective calls. The contention that the forfeiture was invalid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld have paid the application and allotment money), on Rs. 1,250 from the 10th November 1937 and on Rs. 1,250 from the 11th September 1938. As the appellant has signified his willingness to meet his liability we will vary the decree of the trial Court by declaring that the forfeiture is invalid and that the appellant is entitled to remain on the register as the holder of fifty shares, provided he pays Rs. 5,000, with interest as specified above, and the cost awarded by the lower Court within two months of this date. If he fails to make the payment within the time specified, his appeal will stand dismissed with costs and the memorandum of cross-objections will be allowed with costs. To this the appellant agrees. The facts in Appeal No. 190 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot subscribe to this opinion. The case has to be decided on the law and only on the law. The respondent subscribed to the memorandum of association and therefore is liable to pay for his shares in cash. If he did in fact enter into an arrangement with the promoter of the company under which he was to receive ten shares for his services, the position would not be altered. The decree of the District Judge must be set aside with costs in the trial Court. As the respondent is agreeable to the same order being passed in this case as in the other appeals, there will be a declaration that the respondent is entitled to remain on the register as a holder of ten shares, provided he pays the principal sum of Rs. 1,000 with interest as payable by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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