9911796707
TMI Blog1985 (4) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... ny held its annual general meetings, nor has it filed its annual returns with the Registrar of Companies. Consequently, it is expedient and in the interest of justice that it should be wound up. The petition was admitted on September 30, 1983. The court directed that the notice should be issued to the company and other persons arrayed as respondents in the case. On January 9, 1984, one Shri Bhagwan Das Jaiswal, claiming to be a director of the company, filed a counter-affidavit questioning the right of the petitioner to file the winding up petition and asserting that the petition is mala fide and has been filed for ulterior reasons. He also controverted the other allegations made in the petition. Subsequently on November 10, 1984 an appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to as the Companies Act). The expression "contributory" has been defined in section 428 of the Companies Act as under : "The term 'contributory' means every person liable to con tribute to the assets of a company in the event of its being wound up, and includes the holder of any shares which are fully paid up. . . . ." It is the not the case of the petitioner that he is a person who is liable to contribute to the assets of a company. He claims that after the death of his father, Sri Mahadeo Prasad, who jointly held two fully paid-up shares of the company along with Sri Purushottam Dat, the interest of his father has devolved upon him and that he has become entitled to the shares held by his father. Inasmuch as he holds certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . According to the aforementioned regulation, where shares are held jointly and one of such joint shareholders dies, it is the survivor who alone is to be recognised as having title to the said shares. The question of a legal representative of a shareholder becoming entitled to the shares arises only in a case of a sole shareholder. In the instant case, admittedly, the shares were held jointly by Shri Mahadeo Prasad, the father of the petitioner and Sri Puru-shottam Dat. Accordingly, after the death of Sri Mahadeo Prasad, it was Sri Purushottam Dat, who alone became entitled to those shares and no title in respect of those shares passed to the heir and the legal representative of Sri Mahadeo Prasad. In this view of the matter, it cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d urged that the decision in the aforementioned Madras High Court's case is wrong. In support of his contention, he relied upon the decision in the case Re Bayswater Trading Co. Ltd., [1970] 1 All ER 608, where Buckley J. while interpreting similar provisions contained in section 224 of the English Companies Act ruled that there is nothing therein to indicate that a person on whom the shares devolve on the death of any holder must have been registered as a holder of those shares before he becomes entitled to maintain the winding up petition. Although I feel that there is force in the submission made by learned counsel for the petitioner that the decision in the case of the Madras High Court, in Nagalakshmi ( B. ) v. Mannargudi Transpo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
