MANSUKHLAL DHANJI VORA Vs. JUPITER AIRWAYS LTD

JUDGEMENT

(1.) This suit is filed by 16 plaintiffs as shareholders of the 1st defendant company on their own behalf as well as on behalf of all other shareholders of the 1st defendant company, except defendants 2 to 12. According to the plaint, the 1st defendant company was incorporated on July 13, 1946, for carrying on business of aerial transport, & by the company's memorandum dated July 12, 1946, the capital of the 1st defendant company was two crores of rupees divided into twenty lacs ordinary shares of Rs. 10 each.

(2.) In para. 2 of the plaint, it is stated that on June 15, 1946, the 1st defendant company issued forms of applications for shares of the 1st defendant company to certain share-brokers named in the paragraph "with the intention that the forms may be used by members of the public for applying for shares." It is then stated that the same were issued without any prospectus and that the 1st company had not at that time even filed a statement in lieu of prospectus with the Registrar of Joint Stock Companies. The applicants for the shares forwarded Rs. 2-8-0 per share with their applications as application moneys in respect of the shares.

(3.) It is stated thereafter that on July 20, 1946, the capital structure of the company was altered from two crores of rupees consisting of twenty lacs ordinary shares of Rs. 10 each to two crores of rupees divided into four lacs preference shares and sixteen lacs ordinary shares of Rs. 10 each; that a general meeting of the share-holders was purported to be held on July 20, 1946, where a special resolution was passed which altered the capital structure as stated above.