- (1.) This is a suit for accounts and payment of the sums found due and owing by the defendant on the said accounts to the plaintiffs. Plaintiffs case is follows: The original plaintiffs Promode Ranjan Sarkar, Pabitra Ranjan Sarkar, Prafulla Ranjan Sarkar and Saroj Ranjan Sarkar are the brothers of Nalini Ranjan Sarkar, a Hindu governed by the 'Dayabhaga School of Law.
(2.) On the 25th January, 1953, the said Nalini Ranjan Sarkar died intestate leaving him surviving the plaintiffs as his only heirs. The original defendant, Hindusthan Cooperative Insurance Society Ltd. at a meeting 1 of its Board of Directors held in Calcutta on 12th August, 1940 resolved as follows :Resolution No. 6- Re: Premises No. 237, Lower Circular Road, the house with all furniture and fittings, except those purchased by Mr. Sarkar himself (meaning thereby the said Nalini Ranjan Sarkar deceased) will as at present belong to the Society, (meaning thereby the Society) Mr. Sarkar having no title thereto or interest therein. He would, however, have the option to reside in and occupy the premises and to use the furniture, fittings, etc., and so long as he occupies and uses the same he will have to pay Rs.1,000/- per month for such occupation and for use of the furniture and fittings, the amount being deducted from his pension or retiring allowance. The Society will pay all taxes and other levies, if any, relating to the above premises. The ordinary maintenance and repair of furniture necessitated as a result of continuous use will be borne by the occupier, the major repairs and all replacements are to be done by the Society.All monies at the credit of Mr. Sarkar with the Society in connection with the proposed purchase by him of No. 237, Lower Circular Road, including the money held to his credit under the Society's Provident Fund Scheme, will be refunded to him after deduction of sums due from him for use and occupation of the said premises.Resolution No. 7: The arrangement mentioned above with the exception of the arrangement re: premises No. 237 Lower Circular Road should be reported to the shareholders at their General Meeting at a suitable opportunity in such form as may be legally advised. The form in which the agreement or agreement between the Society and Mr. Sarkar in respect of all the above is or are to be drawn up will be such as is legally advised. Resolution No. 8: It is put on record that Mr. Sarkar's agreement with the Company dated the 30th August, 1935, be discharged and cancelled as on and from the lst of January, 1940.Resolved that the scheme recommended by the Chairman and Drs. B. C. Roy and N-N-Law and described above be and is hereby approved and given effect to. "
(3.) The said Society at a meeting of its Board of Directors held in Calcutta on the 16th December, 1940 resolved inter alia as follows: "Resolution No. 2- Shahpur Property Development Scheme : Mr. N. R. Sarkar explained the scheme prepared under his guidance and directions for the development and piecemeal sale of the above property acquired from the Port Commissioner of Calcutta. Mr. Sarkar explained that out of a total area of about 580 Bighas, 125 Bighas would be taken up by roads, etc. and the area available for disposal would be about 455 Bighas. The expenditure would be about Rs. 66,60,000/-under the following principal heads, viz., The estimated scale price, after development is Rs. 850/- per Kottah and according the total sale proceeds would be Rupees 77,35,000/- and the net profit is, therefore, estimated to be about Rs. 10,00,000/-.The Secretary is further directed to take instruction from the Investment Committee and the President in connection with important matters relating to the development of the property and to submit periodical reports regarding the progress of development and sale to the Board.Resolved further that Mr. N. R. Sarkar will be paid a bonus of 10% of the total net profit made on the scheme.";