JUDGEMENT
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(1.) PLAINTIFF Messrs Stoneware Pipe and Sanitary Fittings Manufacturing Company
limited- Jaipur, was under members' voluntary wind-ing-up. Shri Ram Gopal
chokhani was appointed. Its liquidator, but he obtained an order on July, 9. 1964
for the appointment of the Official Liquidator to be the liquidator, and for
supervision by Court. The plaintiff has stated that Messrs Madanlal Kishore Sineh
of Kishangarh obtained the permission of the former Jaipur State on January 17,
1946 for establishing a factory for the manufacture of stoneware pipes and other
sanitary fittings in Jaipur. They and some others promoted a public com-pany
under the name and style of M/s. Stone Ware Pipes and Sanitary Fittings
manufacturing Company Limited, and it was incorporated on March 16, 1946,
under the Jaipur Companies Act. The permission and the rights and concessions
etc-granted to M/s. Madanlal Kishore Singh were transferred to the Company,
which appointed M/s. Madanlal Kishore Singh as its managing agents.
(2.) THE managing agents pursued their efforts to obtain allotment of a plot of land
to the Company, in the industrial area, for the setting up of the Company's
factory. Plot No. 3, which is the suit plot, was allotted for the purpose. The
managing agents then addressed letter Ex. 3 dated April 25, 1946 to the Director
of Industries and Commerce for delivery of possession of the plot. The Director
conveyed the sanction for the sale of that plot measuring 450 ft. x 483 ft. for the
establishment of a factory, at the rate of annas 4 per square yard. A sum of Rs. 6. 414/13/6 was accordingly deposited by the plaintiff against cash receipt Ex. 5
dated September 6, 1947. Possession of the plot was given to the plaintiff and it
provided a wire fencing where necessary. The plaintiff has contended that it then
became the full owner, in possession, of the suit plot.
(3.) THE plaintiff has stated further that it constructed roads, buildings, sheds etc. In
and over the suit plot, installed machinery and other equipment at a cost of about
rs. 58. 956/4/- and started the production. Its grievance is that although it was
the owner in possession of the suit plot, the Urban Improvement Trust, defendant
no. 2, illegally and forcibly occupied an area measuring 340 ft. x 483 ft. (18246
2/3 square yards) in May, 1958. That area has been marked ABFE in site-plan Ex. 8. while the entire area purchased by the plaintiff has been marked ABCD in that plan. Shri Ram-pal Singh, who was a share-holder and ex-director of the
company, held a discussion with the Organizer. Industrial Estates, Industries and
supplies department, in that connection, and the Organizer sent him reply Ex. 9
dated January 3, 1959 enquiring about his expectation of the price for the total
area, excluding the area enclosed by the factory. While these efforts to recover the
land were going on, an extraordinary meeting of the members of the Company
was held on August 31, 1961 in which the aforesaid decision was taken to wind it
up voluntarily and to appoint Shri Ram Gopal Chokhani as the liqui-dator. Shri
chokhani found letter Ex. 11 of April 1962, pasted on the factory premises stating
that as the plaintiff was under liquidation and had not fulfilled the conditions on
which the land was allotted, and there was no chance of the land being utilised for
the purpose for which it was allotted, it stood forfeited and its possession resumed
by the Government with effect from the date of the order. Shri Chokhani lodged a
protest under letter Ex. 12 dated April 23. 1962, but did not receive a reply. The
plaintiff then gave a notice under Section 80 of the Code of Civil Procedure, on
june 30. 1962.;
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