Court : Chennai
Decided on : Apr-18-1956
Reported in : AIR1957Mad169; 25CompCas378(Mad)
..... the companies act for declaring any transfer by the company to the debenture holders to be void.but that will not conclude the issue. the government, the workers and other creditors are free to file any petition uades section ..... in favour of the validity of the security regarding the mylapore immoveable property and other similar immoveable properties of the tramway company, not registered under the companies act, by urging that they should be deemed to be registered under the companies act by the debenture deed, ex. d. 9, having been registered.this will not help him, as these immoveable properties were, not the properties of ..... . the learned advocate general wanted us to reserve also the right of the government to agitate the question of fraudulent preference, by the tramway company, in favour of the debenture-holders under section 231 of the companies act. mr. o. t. g. nambiar pointed out that neither the government nor the workers nor any other creditors had brought any petition under section 231 of ..... this court, to which one of us was a party, has held that regarding a floating charge created over the assets of a company other creditors got preferential payment over the debenture holders under section 230(2) of the companies act only it at the moment of the winding up it is still a floating charge, and that once a receiver is appointed by .....Tag this Judgment!
Court : Orissa
Decided on : Aug-16-1956
Reported in : AIR1957Ori232; 23(1957)CLT221
..... resolution as it is a matter solely concerning the share-holders and the only persons who can object are either the creditors or debenture-holders. in support of this contention he relies upon section 14 of the indian companies act, 1913, to the effect: 'the court shall, in exercising its discretion under sections 12 and 13, have regard to the rights and interests ..... the state concerned. 34. to summarise, my findings are as follows. (1) that the state of orissa or any otherperson is competent to raise objections undersection 12 of the indian companies act of 1913, toa change of the registered office and confirmationof the special resolution to that effect; (2) that the court can consider these objections in confirming or not the special ..... alter the regulations contained in their articles is limited only by the provisions contained in the statute and the conditions contained in the company's memorandum of association. wide, however, as the language of section 50 (of the companies act, 1862) is the power conferred by it must, like all other powers, be exercised subject to those general principles of law and ..... good faith; that the alteration is aimed at evading the operation of the impending legislation regarding sales-tax and the provisions of the new companies act; and that the alteration resolved upon is not for the benefit of the company. the state also alleges that the change of the registered offices would entail serious practical difficulties in working out the provisions of the .....Tag this Judgment!
Court : Chennai
Decided on : May-02-1956
Reported in : AIR1957Mad587; 30ITR603(Mad)
..... valuations in respect of which returns have been submitted to the controller under section 15 of this act or to the central government under section 11 of the indian life assurance companies act, 1912. provided that payments made out of any surplus in service of any debentures shall not exceed fifty per cent, of such surplus including any payment by way of interest on ..... the debentures and interest paid on the debentures shall not exceed ten per cent, onany such surplus except when the ..... not facilitated by any neglect or omission on his part; and the court shall have all the powers which a court has under sections 235 and 237 of the indian companies act, 1913, and shall also have the power to assess the sum by which the amount of the life insurance fund has been diminished by reason of the misfeasance and to ..... -fund could be put. these provisions, which have been taken from the life assurance companies act of england, serve to segregate the funds pertaining to life assurance from other funds of composite companies but effect no allocation among the several purposes for which the funds of a life assurance company could be put. it is not the contention of the assessee that the corresponding .....Tag this Judgment!
Court : Orissa
Decided on : Nov-22-1956
Reported in : AIR1957Ori203
..... the formalities required by law. the share scrip was already with the company, consequently, the objection contended for bv mr. choudhury under section 34, clause (3) of the companies act. 1913 that it shall not be lawful for the company to register a transfer of shares in or debentures of the company unless the proper instrument of transfer duly stamped and executed by the transferor ..... and the transferee has been delivered to the company along with the scrip is no longer tenable. 21. ..... oppose, being vitally interested in the proceedings and might be seriously prejudiced by an order for rectification made behind his back and the jurisdiction under section 38 of the indian companies act is unlimited. this case, in my opinion, does not help opposite party no. i. in the course of the judgment, the learned judge mookerjee j., observed. 'the legislature ..... althoughi perfectly agree that if it can be shown affirmatively that they are exercising their power capriciously and wantonly that may be ground for the court interfering.' buckley on the companies act, 12th edition at page 175 says 'where the articles authorise the directors to reject transfers to transferees of whom they do not approve, the directors must before rejecting a .....Tag this Judgment!
Court : US Supreme Court
Decided on : Mar-05-1956
..... by the lake shore r.r. co. and by the new york central, the custom of adopting such agreements has become general. originally, in 1893, the general electric company made a large issue of debentures without an agreement, but, at the time of the refunding in 1912, a trust agreement was executed." "preparation of corporate bonds, mortgages, collateral trusts and ..... private placement," a method of corporate financing which, because of its economies and conveniences, has become popular since the enactment of the securities act of 1933. the government claims that these notes are taxable under 1801 either as "debentures" or "certificates of indebtedness." the taxpayer, on the other hand, contends that these terms, undefined in the statute, do not include ..... delimit the instruments included in the term." "it is therefore held that the term 'certificate of indebtedness' as used in subdivision 1 of schedule a, title xi, revenue act of 1918, includes only instruments having the general character of investment securities, as distinguished from instruments evidencing debts arising in ordinary transaction between individuals, and that conditional bills of ..... or transfer, and usually without coupons." treasury regulations 55, june 11, 1919. the 1920 revision of regulations 55 was substantially identical, as were the regulations issued under the revenue act of 1921 (regulations 55, articles 8 and 35). [ footnote 11 ] "sec. 113.50. scope of tax. section 1801 imposes a tax upon the issue by any corporation .....Tag this Judgment!
Court : Chennai
Decided on : Dec-19-1956
Reported in : AIR1957Mad357
..... deed provided that, if at the end of any financial year it was found that after providing for this rent the result of the company's operations was insufficient to pay both interest on its charges and debentures and dividends at fixed rates on its preference shares and also at least ten per cent., on its ordinary shares, the rent for the ..... of dividends and the profits earned is nothing but a mere device to distribute the profits made in this form amongst the shareholders of this private limited company."5. under section 66 (2) of the act, the tribunal referred the following question to this court,"whether on the facts and in the circumstances of this case the disallowance of the interest in ..... page 231 "the purpose of the act (the dividend duties act) is to tax in the hands of companies all profits they make in the state without regard to the manner in which the profits are dealt with. in this view it becomes, we think immaterial whether the profits are earned by the employment of share capital or debenture capital. it is not denied ..... that the fixed interest charges on debenture capital .....Tag this Judgment!
Court : Chennai
Decided on : Dec-19-1956
Reported in : (1957)2MLJ110
..... deed provided that, if at the end of any financial year it was found that after providing for this rent the result of the company's operations was insufficient to pay both interest on its charges and debentures and dividends at fixed rates on its preference shares and also at least 10 per cent. on its ordinary shares, the rent for the ..... of dividends and the profits earned is nothing but a mere device to distribute the profits made in this form amongst the shareholders of this private limited company.5. under section 66(2) of the act the tribunal referred the following question to this court:whether on the facts and in the circumstances of this case the disallowance of the interest in ..... page 231,the purpose of the act (the dividend duties act) is to tax in the hands of companies all profits they make in the state without regard to the manner in which the profits are dealt with. in this view it becomes, we think, immaterial whether the profits are earned by the employment of share capital or debenture capital. it is not denied ..... that the fixed interest charges on debenture capital .....Tag this Judgment!
Court : Chennai
Decided on : Oct-25-1956
Reported in : AIR1957Mad341
..... in the second, but also consisting of a serious of mutual covenants entered into by all the shareholders inter se in accordance with section 16 of the companies act, 1862. the contract contained in the articles of association is one of the original incidents of the share. a sharg is not a sum of money ..... do not come into the present controversy. the property of the petitioners is now sought to be taken away under section 153-b of the indian companies act. unless it can be shown that that section is in the interests of the public and further that the restriction it imposes is a reasonable one ..... not bound to sell the shares.5. mr. balakrishna aiyar, the learned advocate for the petitioners, first raised the contention that section 453-b of the indian companies act, 1913, which, the" e.i.d. claims entitled it to acquire the shares which the petitioners hold in parry and co, ltd, is ultra vires the ..... in value of the ordinary shares of parry and co., ltd., and that in consequence the e.i.d. in pursuance of see. 153b of the indian companies act, 1913, desired to acquire the. ordinary shares held by the petitioners in parry and co, ltd. in that letter the e. i. d. also told ..... to .pay money to the company. simllary the articles of a company which vitally affect the shareholder may be. altered under section 20 of the act. a shareholder may be also affected in several other ways by the action of the majority, the company may issue preference shares or it may issue debentures or it may make further .....Tag this Judgment!
Court : Chennai
Decided on : Dec-11-1956
Reported in : AIR1957Mad382
..... persons, sought leave to file a suit in 'forma pauperis to obtain various reliefs against the receivers appointed by the trustees of the mortgagee debenture holders of the company.2. now, it has been held in this court that a representative suit cannot be filed in forma pau-peris unless all the persons sought ..... just it must be possible to discover some reasonable foundation for it. i am unable to discover any in the present case. as i read the act, government have no power to say that they exempt a particular individual from payment of fees in a particular case. the section does not purport to ..... other natural visitation it may be open to government to say that people living in that area are exempt from the payment of the fees payable under the act in respect of all or specified matters. but, i find it difficult to see how the former employees of the m. e. t. ltd., can ..... george gazette, reduce or remit, in the whole or in any part of the territory of this state, all or any of the fees chargeable under this act and may, in like manner, cancel or vary such notification."it will be seen that this section empowers the government to reduce or remit the fees payable ..... which is not of present interest.then follow various sections directing how the fees shall be computed in the various categories of cases dealt with by the act. chapter vii which contains sections 66 to 73 deals with refunds and remissions and exemptions. in section 72 the legislature has enumerated twenty different types of .....Tag this Judgment!
Court : US Supreme Court
Decided on : Mar-26-1956
..... unsecured trade and commercial debts, none of which is evidence by any publicly held security. petitioner has indeed no debts of any nature by way of bonds, mortgage certificates, notes, debentures, or obligations of like character, publicly held. it does, however, have over 2,000,000 shares of $1 par value common stock listed on the american stock exchange and ..... for general corporate purposes. it was then decided to liquidate the existing specialty stores and to have petitioner acquire the stock of two existing retail drugstore chains -- stineway drug company and ford hopkins company. the stineway stock was acquired for $1,220,320, petitioner borrowing $870,000 from stineway for the purpose. later, petitioner borrowed an additional $440,000 from stineway ..... to the united states court of appeals for the second circuit syllabus petitioner instituted proceedings under chapter xi of the bankruptcy act, alleging inability to pay its debts as they matured. it had been converted from an operating company to a holding company with the shares of the subsidiaries pledged to creditors; and it had heavy short-term loans. it had no ..... under c. xi, but that c. x offered the appropriate relief. that was a case of a debtor with publicly owned debentures, publicly owned mortgage certificates, and publicly owned stock. an arrangement was proposed that would leave the debentures and stock unaffected and extend the certificates and reduce the interest. it was argued in that case, as it has been in .....Tag this Judgment!