Court : Allahabad
Decided on : May-24-1963
Reported in : AIR1965All135; 33CompCas1142(All)
..... of the english companies act, 1929, was made in the indian act for the first time when the indian companies act, 1913, was amended under the companies (amendment) act, 1936. sub-section (3) of section 34 of the indian companies act, 1913, as amended in 1936 was as below:'it shall not be lawful for the company to register a transfer of shares in or debentures of the company unless the proper ..... till the enactments of the companies act in 1929, restrictions which were binding on the company notwithstanding anything in the articles of the company, section 63 of the english companies act, 1929, for the first time provided that:'notwithstanding anything in the articles of a company, it shall not be lawful for the company to register a transfer of shares in or debentures of the company unless a proper instrument ..... of transfer has been delivered to the company.'an exception was, however, made in the .....Tag this Judgment!
Court : Chennai
Decided on : Oct-10-1963
Reported in : 53ITR292(Mad)
..... treated as a distribution to proprietors by virtue of the provision of section 36(1)(c), finance act, 1947. the company contended that while the advance on the security of the debentures was an amount applied by way of loan, it was not applied for the benefit of any person, since the money was lent on commercial terms, and that the subsequent ..... interest was paid and in november, 1947, and may, 1949, the company waived the interest due for the periods up to 31st october, 1947, and 31st ..... one or more of the following modes :- (i) in shares, stocks, debentures and securities of any public or private company, public body or government whether the same be trustee securities within the meaning of the indian trusts act or not; (ii) in loans or advances to any person, firm, body or company in such manner and on such terms an with or without security ..... to extend its business to eire and formed an associated company at that place. on 16th september, 1947, that eire company acquired shares in the appellants company which were later forfeited because of non-payment of calls. on the same date the appellant company advanced pounds 35,000 to the eire company on the security of debentures carrying interest at 5 per cent. per annum. no .....Tag this Judgment!
Court : Kolkata
Decided on : Dec-17-1963
Reported in : 36CompCas365(Cal),60ITR384(Cal)
..... carefully the argument advanced by learned counsel on behalf of the applicant, it seems to us that, if we came to the conclusion that section 78 of the companies act, 1956, applied to banking companies, the order of the tribunal in the instant reference must be upheld. the real question for determination in this reference, therefore, is whether or not section 78 of ..... to be included in the share premium account. ' 5. having regard to the provisions of the explanation to paragraph d of the first schedule to the finance act, 1956, and section 78(3) of the companies act, 1956, the appellate assistant commissioner held that the sum of rs. 45,50,000 (rupees forty-five lakhs and fifty thousand) formed an identifiable part of ..... of, or the commission paid or discount allowed on, any issue of shares or debentures of the company ; or (d) in providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company, (3). where a company has, before the commencement of this act, issued any shares at a premium, this section shall apply as if the shares ..... had been issued after the commencement of this act: provided that any part of the premiums which has been so applied that .....Tag this Judgment!
Court : Orissa
Decided on : Apr-18-1963
Reported in : AIR1963Ori189
..... from one crore to three crores. mr. jain filed an application u'nder sees. 397 and 398 of the companies act (company act case no. 10/60) on 14-9-60 alleging acts of oppression and mismanagement and praying inter alia for a declaration that the resolution regarding the allotment of 39,000 ordinary ..... and by mr. justice rao in the interim injunction matter.23. mr. justice burmart further held that the amendment of section 81 by the companies act, 1960 (act 55 of 1960) which came into force on december 28, 1960 supports the view that the new shares must be allotted only to the existing ..... identical principles may fall to be applied to both alike. but this is not to say that we can import the detailed provisions of the partnership act into the companies act, still less we can ignore the specific requirement of section 210.' in (1937) 1 ch. 392. mr. justice simonds observed : 'whether ..... dated 14th september, 1960. the petitioners case is as follows :--(a) kalinga tubes limited (hereinafter to be reterred to as the company) is a company incorporated under the indian companies act having its registered office at chod-war in cuttack district. the petitioner is a holder of 3000 shares of the value of rs ..... the companies act 1956 in so far as tney are not hereby modified or altered shall apply to this company.'article (2) was deleted by a resolution on 11th january 1957. original article (2) (b) and (c) were as follows :--'(b) any invitation to the public to subscribe any share and debenture is .....Tag this Judgment!
Court : Gujarat
Decided on : Sep-28-1963
Reported in : 55ITR171(Guj)
..... is only by virtue of the artificial definition of 'dividend' in the income-tax act, as distinguished from that under the companies act, that the income-tax officer is permitted to go behind the liquidation proceedings and ascertain, presumably from the records of the company, whether from the funds lying with the liquidator there are funds which have their ..... clause, as amended by the finance act, 1955, reads thus : ''dividend' includes - (a) any distribution by a company of accumulated profits whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company; (b) any distribution by a company of debentures, debenture-stock or deposit certificates in any ..... its amendment by the finance act, 1955, stood as under : ''dividend' includes - (a) any distribution by a company of accumulated profits whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company : (b) any distribution by a company of debentures or debentures stock, to the extent ..... amended by the finance act of 1956, which defined 'dividend' as under : 'dividend includes - (a) any distribution by a company of accumulated profits whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company; (b) any distribution by a company of debentures, debenture stock or deposit .....Tag this Judgment!
Court : Chennai
Decided on : Nov-12-1963
Reported in : (1964)1MLJ281
..... : l.r. 63. la. 457 : 71 m.l.j. 525. the facts of that case were as follows. an investment company was carrying on business in india and it capitalised its accumulated undistributed profits and issued to its shareholders bonus debentures, which were subsequently redeemed. it was held that the share-holders, did not, as a result of those transactions, receive any ..... observes:it is common, however, for articles to contain a power for the company to capitalise profits or reserves, and to issue fully paid shares or debentures of a nominal value equal to the amount capitalised to its shareholders. these new shares or debentures are known as bonus shares or debentures'; but the name is misleading in that it implies that they are a ..... gift from the company. if they were a gift, they would not be paid up ..... taxable income, profits or gains within the meaning of section 4 of the indian income-tax act, 1922. the personal motive or purpose of the individual share-holders, even though they held controlling interest in the company, was held .....Tag this Judgment!
Court : Chennai
Decided on : Nov-12-1963
Reported in : 52ITR96(Mad)
..... is common, however, for articles to contain a power for the company to capitalise profits or reserves, and to issue fully paid shares or debentures of a nominal value equal to the amount capitalised to its shareholders. these new shares or debentures are known as bonus shares or debentures, but the name is misleading in that it implies that they are ..... the indian income-tax act quoted the same observation with approval. that is the case of commissioner of income-tax v. mercantile bank of india. the facts of that case were as follow : an investment company was carrying on business in india and it capitalised its accumulated undistributed profits and issued to its shareholders bonus debentures, which were subsequently redeemed ..... the personal motive or purpose of the individual shareholders, even though they held controlling interest in the company, was ..... . it was held that the shareholders did not, as a result of those transactions, receive any taxable income, profits or gains within the meaning of section 4 of the indian income-tax act, 1922. .....Tag this Judgment!
Court : Karnataka
Decided on : Mar-15-1963
Reported in : AIR1964Kant173; AIR1964Mys173; (1964)1MysLJ1
..... the court below has taken an erroneous view of the law. when a 'private company' is converted into a 'public company', there is no change in the legal personality of the company in question, 'private company'' is defined in section 3(iii) of the indian companies act, 1956, as follows:' private company' means a company which, by its articles,(a) restricts the right to transfer its shares, if ..... (a) of section 31 makes it clear that even when the articles of a company are altered, the company continues to be the same. now we may notice section 38 of the companies act. it reads:'notwithstanding anything in the memorandum or articles of a company, no member of the company shall be bound by an alteration made in the memorandum or articles after the date ..... (ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased; and(c) prohibits any invitation to the public to subscribe for any share is, or debentures of, the company: provided that where two or more persons hold one or more shares in a ..... company jointly, they shall, for the purposes of this definition, be treated as a single member.' section 44 of that .....Tag this Judgment!
Court : Supreme Court of India
Decided on : May-09-1963
Reported in : AIR1964SC250; 33CompCas862(SC); 3SCR698
..... concerned, observed at p. 264, 'in the present case, the articles relating to forfeiture do not, in my view, offend against the provisions of the companies act, as they do not contemplate a reduction of capital or a purchase of shares or a trafficking in shares'. now, obviously, if upon forfeiture, the shares ..... re-issue of a forfeited share is not an allotment of share within s. 75(1). the word 'allotment' has not been defined in the companies act either in our country or in england. but we think that the meaning of that word is well understood and no decision has been brought to ..... question in this appeal is, what is the meaning to be ascribed to the word 'allotment' occurring in s. 75(1) of the companies act, 1956 that section requires a company to file a return of the allotment of its shares with the registrar within a month of the making of the allotment. the appellant who ..... . as the learned judges of the high court pointed out, s. 75 occurs in part iii of the act which deals with 'prospectus and allotment, and other matters relating to issue of shares or debentures'. section 69 to 75 are classed under the sub-heading 'allotment' and the only kind of allotment that ..... is dealt with in these sections is the appropriation of shares to individuals out of the unappropriated share capital of the company. in these circumstances it would be .....Tag this Judgment!
Court : Kolkata
Decided on : Feb-05-1963
Reported in : AIR1963Cal629
..... proceed on broad general principles. in the first place, the veil of incorporation is not intended to conceal the internal affairs of the company from view because the companies act itself recognises it as an essential feature of corporate personality that it should be accompanied by the widest publicity. these special instances may be ..... been held as yet in any case that even in cases of state enterprises in what are known as the government companies under the companies act its employees are regarded as government employees in 'spite of many controls, financial and administrative that the government may have in respect of such ..... classified as (1) under express statutory provisions, as for instance, members being liable under the companies act if the numbers of the company are allowed to fall below the prescribed minimum or in the case of fraudulent trading or misdescription of ..... court has always looked to the reality of the transaction and would not allow the purpose of the acts to be defeated by the use of the companies acts, as for instance, in samrose properties ltd. v. gibbard, (1958) 1 wlr 235. a similar approach was made in the prize ..... stamp act (1 of 1879) at page 46 made the following observation:'the document, upon the face of it, professes to be a conveyance of a tea garden from eightgentlemen to the kondoli tea company, limits in consideration of 43,320, the said consideration being payable in shares and debentures of the company taken .....Tag this Judgment!