Court : Mumbai
Decided on : Mar-30-1943
Reported in : AIR1943Bom825; (1943)45BOMLR633
..... petition dismissed. cross-objections dismissed.kania, j.12. the question for consideration in this appeal relates to the construction of section 153b of the indian companies act which is recited in extenso in the judgment of the learned chief justice. the terms of that section, in my opinion, clearly show that unless ..... whether the report of the experts was based on correct principles. technically that was not the point at all. the report on which the transferee company acted in making the offer was irrelevant. what was really relevant were the reasons, which induced the majority of shareholders to accept the offer, and ..... mr. justice chagla making an order on a petition under section 153b of the indian companies act, 1913, directing that the purchasing company should not be at liberty to acquire the shares of the minority shareholders in the transferor company. that section is a new section, and is in these terms :153b(1). ..... to the conclusion that the report of the experts on which the offer was based, and some of the materials on which the valuers had acted and the company had based their acceptance of the offer, were wrong ; in particular he considered that the value of the assets in march 1941, when the ..... , and the prospect of more capital being called in. it should be noticed that at the date of this discussion there were already outstanding debentures of rs. 75,00,000. all these factors must have been considered by the shareholders. in my opinion no ground has been established to .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-23-1943
Reported in : 11ITR578(Bom)
..... of rs. 4,66,667 representing the 3 1/2 per cent. interest on debenture stock paid by the secretary of state in england is income of the company arising without british india within the meaning of section 4-a(c) of the act,' section 4-a defines 'residence in british india,' and sub-section (c) enacts ..... than the income arising outside british india, and that depends on whether this sum of rs. 4 lacs odd of interest on debenture stock can be regarded as income of the company arising out of british india. it is paid in london although out of the revenues of india. i should think that if ..... looks at the contract under which the liability of the secretary of state to pay interest on debentures arises, it seems to me quite that these payments of interest on debentures never formed part of the income of the company. the contract provides that 'the secretary of state will, as often as and when the ..... interest to the persons entitled thereto.' so that, it is paid as a fund to meet a particular debt of the company, that is to say, interest on debentures, and admittedly the company keeps the money on a separate account. therefore, in my opinion, it never forms part of the income of the ..... is worded, it seems to me that it never formed part of the income of the company. analogous questions frequently arise in insolvency and if the assessee were an individual, and became insolvent, i think undoubtedly the debenture-holders could claim this fund as fund earmarked to pay their interest, and would not be .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-18-1943
Reported in : AIR1944Bom97; (1943)45BOMLR1059
..... the lighting of the streets itself or enter into a contract for the purpose with a private company. the entering into a contract with the jalgaon electric supply company was, therefore, an act which the municipality was empowered by the act to do, but which it was not required to do. it was a contract voluntarily entered ..... 1940, and a sum of rs. 13-12-6 remained unpaid for the bill of january, 1941, making in all rs. 32-7-0. the electric company gave notice to the municipality on january 8, 1941, calling upon it to pay the amount. when this notice was not complied with another notice was given ..... of the first class subordinate; judge, jalgaon, dismissing a suit brought by the petitioner, the principal officer of the jalgaon electric supply company, ltd., against the borough municipality of jalgaon, the suit was to recover a sum of rs. 32-10-0 due to the jalgaon electric supply ..... municipality filed its written statement in which inter alia it contended that the suit was bad for want of notice under section 206 of the bombay municipal boroughs act. the only question in dispute was, therefore, as to the liability of the municipality to pay three annas for interest and costs' of the suit.2 ..... which it was not compelled to enter into.after examining the provisions of sections 106 and 110 of the act which deal with the powers of the corporation to borrow on the security of debentures the learned chief justice said (p. 692) :-i am clearly of opinion that the wrongful action charged against the .....Tag this Judgment!
Court : US Supreme Court
Decided on : Mar-15-1943
..... a commitment to bid at public sale, was accepted by the debtor. the specifications referred to in the notice calling for bids on the debentures contain the following: "the main line of railroad of the company extends from san francisco, california, to salt lake city, utah, with branches, and aggregates 1050.5 miles more or less of first ..... delivered the opinion of the court. petitioners seek review of a decree of the circuit court of appeals in the reorganization of the western pacific railroad company under section 77 of the bankruptcy act. that decree reversed the order of the district court which had approved the plan for reorganization certified to it by the interstate commerce commission. [ footnote ..... , operating 15.86 miles of terminal switching line in the city of alameda on san francisco bay." "none of the above subsidiary or affiliated companies has filed a petition under section 77 of the bankruptcy act, as amended." [ footnote 3 ] these figures represent reported consolidated earnings "adjusted to take into account (a) rehabilitation expenditures in the years ..... to reorganize railroads unable to meet their obligations. [ footnote 10 ] the amendments of 1935 were primarily designed to cure defects disclosed by practical experience. [ footnote 11 ] both acts are bottomed upon the theory of debtor rehabilitation by adjustment of creditors' claims. such treatment was essential for embarrassed railroads, as ordinary bankruptcy liquidation or judicial sales were impossible because .....Tag this Judgment!
Court : US Supreme Court
Decided on : Mar-01-1943
..... (a)(4). [ footnote 7 ] indebtedness is defined as indebtedness existing at the close of business december 31, 1937, and evidenced by bond, note, debenture, certificate of indebtedness, mortgage or deed of trust issued by the corporation and in existence at the close of business december 31, 1937, or a bill ..... tax net income after credits) less the so-called "dividends paid credit." by 27, the act defined the latter as comprising dividends paid during the taxable year, including (27(d)) dividends in obligations of the company to be reckoned at face value or market value, whichever was lower. the subsection also ..... it is a specific provision, qualifying an earlier general provision of 27, must be rejected. it remains to consider the treasury regulations promulgated under the 1938 act. [ footnote 9 ] these forbid a credit such as that claimed in this case, calling it a "double credit." we think the regulations are ..... fairness dictated that in such case the corporation should have a further dividends paid credit for this excess of value paid by it. the revenue act of 1938 adopted a different plan of corporate taxation. with respect to a corporation having the amount of income earned by the respondent, 13 ..... of the board of tax appeals sustaining an order of the commissioner disallowing a credit in the computation of respondent's tax under the revenue act of 1938. mr. justice roberts delivered the opinion of the court. in this case, the circuit court of appeals held the respondent entitled .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-15-1943
Reported in : AIR1943Bom201; (1943)45BOMLR358
..... and that the latter should sell their respective shares of annas 2-6 each in the rupee at par, and that they are also to sell the debentures held by them to seth govindram gowardhandas seksaria at par. then he provides that the outgoing partners in the managing agency will be entitled to the managing ..... to be fixed conditional on the parties wishing to sell, because the terms of that document are :if any of us were to sell or buy any debentures of this mill or any share of the managing agency or any kind of 'capital stock' then the prime minister is to fix the price of such ..... mills limited, indore, by this writing authorize the prime minister of the holkar state to fix the price of the transaction of purchase or sale of any debentures of the said mills or any share in the agency or capital stock of any nature that may be effected by any one of us. and the ..... agency and selling agency commission and also interest on their invested capital excluding debentures till the day of payment of the invested capital which must be paid within one month. then he directs that the outgoing partners shall be liable for ..... giving rise to the appeal are these. the plaintiffs and defendants are partners in a firm, the business of which is to act as managing agents of the indore malwa united mills, limited, a company which owns mills in indore state, and they carried on business under articles of partnership dated july 17, 1935, which are .....Tag this Judgment!