9911796707
TMI Blog1969 (9) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... uring cotton textiles at Beawar. Article 75 of the articles of association of this company provided for the appointment of agents, secretaries, treasurers, chairman and managing director and for their remuneration. It runs as follows : "Rai Sahib Seth Kundan Mal, son of Seth Hansraj, proprietor of the firm of Seth Kundan Mal Lal Chand of Beawar, and Seth Vithal Das Rathi, son of Seth Damodar Das Rathi, proprietor of the firm of Seth Thakurdas Khinvaraj of Beawar, or their heirs, executors, administrators, successors, representatives or their duly authorised agents or such other person or persons as may from time to time be appointed by them shall be agents, secretaries, treasurers, the chairman and the managing director of this company an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of the State of Ajmer, was ordered to hold possession of the mills on behalf of the court. Shri Sharma commenced management of the mills with effect from 12th September, 1956. This order was vacated by this court on 1st July, 1957. This court, however, acting under section 398 of the Indian Companies Act, appointed Shri O. N. Sharma, Labour Commissioner of the State of Rajasthan, as receiver of the mills on 25th September, 1957, who remained in charge of the management of the mills up to 17th September, 1958. Then under the orders of this court, an interim board of management was appointed which managed the company from 17th November, 1958, to 30th May, 1959. On 30th May, 1959, a new board of directors was appointed with Shri Mardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner. On an application made by the assessee, the following question has been referred to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the assessee-company was liable in law to pay the remuneration for the period between 13th September, 1956, to 31st December, 1956, under the provisions of article 75 of the articles of association ;" In our opinion, the answer to this question depends on the terms contained in article 75 of the articles of association of the company which has been quoted above. Under this article Mr. Kothari and Mr. Rathi were entitled to get 16% of the net profits of the earnings of the company as remuneration for their services and not otherwise. On account of mutual b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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