Court : Allahabad
Decided on : Jul-07-1970
Reported in : 79ITR235(All)
..... facts clearly point to the truth of the assessee's version that he was liquidating his investments, in government securities, as well as in preference and equity shares and debentures issued by various companies, with a view to invest, principally, in tata ordinary.11. the view taken by the income-tax authorities that the transactions in shares carried on by the ..... by him.10. on an analysis of the above figures the following facts stand out clearly. the assessee was at the beginning investing his money in government securities, debentures and preference shares of limited companies which are, normally, not purchased by a dealer in shares and securities. the fact that the assessee sold away the shares of messrs. associated cement co. ..... , the assessee was advised that for the purpose of investment tata ordinary shares were the best, and acting upon such advice the assessee gradually liquidated his holdings of government securities, debentures and preference shares of other companies with a view to invest the amounts in tata ordinary shares. thus, by the assessment year 1960-61, the assessee held tata ordinary shares of ..... relevant to the assessment years 1954-55 and 1955-56, the assessee had purchased mostly government securities and debentures of standard vacuum refineries co. ltd. and of burmah shell refineries ltd. the assessee had also preference shares of tata iron and steel company and titagurh paper mills ltd. in the next following year, relevant to the assessment for 1956-57, .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-28-1970
Reported in : AIR1971Cal78,41CompCas1063(Cal)
..... be deemed to be the creditors within the meaning of clause (b) of sub-section (1) of section 439 of the companies act, 1956. this new definition of the word 'creditors' has been introduced by the 1956 act and accordingly the debenture holders' right to present a petition for winding up has been recognised by the statute.24. accordingly, in my opinion there is ..... 278. the said division bench also relied on the principle set out in a passage in buckley on the companies act. the said passage appears in the 13th edition at page 464 as follows :'but where the obligation to debenture holders was direct by the company to pay the bearer, the bearer could present a petition.'22. the principle can best be understood if ..... debentures stock-holders from the case of the bearer debenture holders. the petitioners being the debentures stock holders their stock was created by the trust deed of november 29, 1904 ..... some of the stock holders for non-payment of interests the same was opposed by the holders of 1,00,0001 prior lien debentures and their trustees, first on the ground that the petitioners were not the creditors witbin section 82 of the companies act. 1862, and secondly, on the merits. in delivering his judgment swinfen eady j. distinguished the case of the .....Tag this Judgment!
Court : Gujarat
Decided on : Sep-23-1970
Reported in : (1971)12GLR355
..... securities specified in the section 20 of the indian trusts act, 1882, (e)in shares, or security bonds, or debentures, issued by any other society with limited liability, or(f) in any co-operative bank or in any banking company approved for this purpose by the registrar, and on such ..... voting power in a co-operative form of organisation is not in proportion to the shareholding as in the case of a joint-stock company but each member is given one vote so as to ensure equal participation in management by all, irrespective of their wealth. co-operation ..... 'under' has various meanings in the english language. we find the following meanings at page 1400 of the concise oxford dictionary : 'in the position or act of supporting or sustaining, subjected to, undergoing, liable to, on condition of, subject to, governed or controlled or bound by, in accordance with... ..... unnecessary to consider the other grounds. that ground relates to the constitutional validity of sees. 96 to 102 of the gujarat co-operative societies act, 1961. these sections which occur under the heading 'procedure for deciding disputes' provide a special machinery for adjudication of disputes touching the constitution, ..... of co-operative societies hereinafter referred to as 'the registrar') referring the dispute for adjudication under section 96 of the gujarat co-operative societies act, 1961. the petitioners and the second respondent society were joined as respondents and a declaration was sought that the first respondent was a .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Oct-19-1970
Reported in : AIR1971SC251; 41CompCas127(SC); (1970)3SCC594; 2SCR661
..... under section 73(1) of the companies act, 1956.the two stock exchanges which had acquiesced in the judgment of the rangarajan, j., urged that the order granting writs of mandamus requiring the two exchanges to 'enlist' the ..... urged on behalf of the union :(1) the permission granted by the bombay stock exchange after the expiry of seven weeks violated the provisions of section 73(1) of the companies act, 1956 and was on that account invalid; and(2) that grant of permission by one out of the three exchanges did not protect the allotment of shares from being invalid ..... relevant provisions of section 73 of the companies act, 1956, in force at the date of the applications for permission for the shares to be dealt in the exchanges provided :(1) where a prospectus, whether issued generally or not, states that application has been made or will be made for permission for the shares or debentures offered thereby to be dealt in on ..... is not deemed to be refused until it is finally decided.15. the application for allotment of shares and acceptance thereof constitute a contract between the company and the applicant. section 73(1) of the companies act imposes a penalty whereby the allotment of shares becomes void on the happening of the contingency specified therein. the imposition of penalty depends upon the violation .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-18-1970
Reported in : 143ITR236(Bom)
..... above law is to be applied to the facts of the present case. the facts on which reliance has been placed very strongly on behalf of the assessee-company are that though the debentures provided for payment of interest every six months on june 30 and december 31, the payment in the agreed mode and manner had been rendered impossible by the ..... full interest charged or not) in pounds sterling to the barclays bank, london, to the credit of the interest suspense account to be operated by the trustees of debenture-holders. after the brazilian company made payment in pounds sterling in the barclays bank, london, in pursuance of the above arrangement, to the credit of the interest suspense account operated by the trustees ..... paid to the debenture-holders, including the assessee-company, at the place of residence of the ..... accounts in accordance with the mercantile system. the assessee-company had no right, having regard to the provisions of s. 13 of the act, to alter that system for its own convenience. the provision for payment of interest in pounds sterling did not prevent the brazilian company from making payment, because the debentures did not provide for payment in london. the interest could be .....Tag this Judgment!
Court : Delhi
Decided on : Jul-24-1970
Reported in : 41CompCas116(Delhi); ILR1970Delhi184
..... (1) to escape the consequence of the allotment being void and for this submission he relies upon the opinion of buckley in the thirteenth edition of his book on the companies acts at page 124 that:- 'notethat the sub-section does not say if the permission has not been granted before the expiration of three weeks, etc.' '(13) it is true that ..... (1) of section 73 is in these terms :- 'wherea prospectus, whether issued generally or not, states that application has been or will be made for permission for the shares or debentures offered thereby to be dealt in on a recognised stock exchange,, any allotment made on an application in pursuance of the prospectus shall, whenever made, be void, if the permission ..... therein. the mandatory nature of the provisions of section 73 is indicated by sub-section (4) which makes any condition purporting to require or bind any applicant for shares or debentures to waive compliance with any of the requirements of this section void. the only other sub-section which is relevant to the controversy raised in these appeals is sub-section ..... effect that application has been or will be made for permission for the shares or debentures offered thereby to be dealt in on a recognised stock exchange. if application is not made as stated in the prospectus, the consequence is that the allotment becomes void and the company and its directors are liable to repay the amounts received in pursuance of the .....Tag this Judgment!
Court : Mumbai
Decided on : Jan-01-1970
Reported in : 121CompCas374(Bom); 56SCL665(Bom)
..... is specifically conferred on the districtcourt by the central government. the section alsoauthorised central government to investjurisdiction in the district courts to deal withsome of the provisions in the companies act.section 2(ll) defines 'court' as meaning the courthaving jurisdiction under section 10 as regards allcivil matters. in avanti explosives (p) ltd vsprincipal subordinate judge, tirupati ..... reserve bank ofindia on which power to grant such permission wasconferred by the parliament under section 29 offera and the special permission will prevail overthe provisions of the companies act.50. mr. chidambaram placed heavyreliance on the decision of the supreme court inharishankar bagla vs m.p.state : 1954crilj1322 .in that case the supreme court was ..... that plaintiff is entitled to adeclaration and injunction in respect of thevoting rights pertaining to the preference sharesheld by it by virtue of section 87(2)(b)(ii) ofthe companies act.10. it is not necessary to elaboratethe well-settled principles in the matter of grantof injunctions. in a recent decision in colgatepalmolive (india) ltd. vs . hindustan leverltd ..... orimmovable, easements, privileges,assets, rights and effects of thecompany for such consideration as may bethought fit and in particular forstocks, shares or debentures whetherfully or partly paid up; or securitiesof any other company having objects inwhole or in part similar to those of thecompany or on payment of any royalty ortribute.'relying upon object b-37, .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Feb-10-1970
Reported in : AIR1970SC564; 40CompCas325(SC); (1970)1SCC248; 3SCR530
..... in barium chemicals  supp. s.c.r. 311 and rohtas industries ltd.  2 s.c.r turned on the interpretation of section 237 of the companies act and executive acts thereunder. the language used in that section is 'in the opinion of, the judicial committee in the hubli electricity case 76 i.a. 57 interpreted the words 'the ..... with regard to assets either there was no principle or the principle was irrelevant or the compensation was illusory or it was not just equivalent. as to securities, shares, debentures part 1(c) explanation (iv) was criticised on the ground that there was no principle because period was not fixed and was left to be determined by some ..... compensation in section 6(1); secondly, section 6(6) was an unreasonable restriction; thirdly, the four disputed businesses are not subject matter of acquisition for public purpose; fourthly, debentures cannot be subject matter of acquisition; fifthly, currency notes, cash, coins cannot be subject matter of acquisition. it was said that securities and cash which are maintained under section ..... without security, the drawing, making, accepting, discounting, buying, selling collecting and dealing in bills of exchange, hoondees, promissory notes, coupons, drafts, bills of lading, railway receipts, warrants, debentures, certificates, scripts and other instruments and securities whether transferable or negotiable or not, the granting and issuing of letters of credit, traveller's cheques and circular notes, the buying, selling .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-05-1970
Reported in : 80ITR415(Bom)
..... with which the loan was obtained. 5. mr. joshi, the learned counsel for the department, contended that in the case before us, under the terms of the debenture trust deed, the assessee-company was under an obligation to spend the amount borrowed for construction or repairing of it buildings and for acquiring plant and machinery and that, therefore, in our case ..... industrial finance corporation. to secure the loan a mortgage was created by a debenture trust deed dated the 23rd december, 1953. under clause 7 and 24 (h) of the debenture trust deed, the assessee-company was under an obligation to use the monies raised by the issue of the debentures for erecting, constructing, reinstating or restoring it buildings or structure and for acquiring ..... or installing plant and machinery required for the business of the assessee-company. the assessee claimed the said sum of rs. 1,28,401 in the above assessment year as a deductible expenditure under ..... indian income-tax act, 1922. 2. the assessee is a public limited company. the assessment year relevant to this reference is 1956-57, the corresponding accounting year being the year ended on 30th june, 1955. during the accounting year the assessee-company incurred expenditure of rs. 1,28,401 in connection with the issue of debentures. the loan secured by the debentures was rs. 50 .....Tag this Judgment!
Court : Delhi
Decided on : May-13-1970
Reported in : 41CompCas141(Delhi)
..... for respondents nos. 1 to 5 limited the meaning of the expression 'or otherwise' to cases expressly covered by sections 108 and 109 of the companies act which have been noticed already ; they prevent the transfer from being registered unless the instrument of transfer is produced and the instrument of transfer is also ..... petitioner lost the right to invoke the writ jurisdiction of this court, after incurring the penal consequences, as provided in section 111(9) of the companies act. i am unable to find any force in this contention either. 10. it is necessary to notice a few facts against the background of which ..... recalling that the entire controversy was disposed of by a common order which involved a common question--scope and construction of section 111 of the companies act, 2. there is no force at all in the contention that these writ petitions should have been filed in calcutta where the appeals were actually ..... by operation of law of the right to, any shares or interest of a member in, or debentures of, the company.17. sub-section (2) is important and has to be set out fully :' if a company refuses, whether in pursuance of any power under its articles or otherwise, to register any such transfer ..... bench of that high court. (5) the provisions of sub-sections (1) to (4) shall apply in relation to the rectification of the register of debenture holders as they apply in relation to the rectification of the register of members. ' 41. it is seen from the report of the sastri committee which .....Tag this Judgment!