SUBHODHAYA PUBLICATIONS LTD Vs. C VASUDEVAN AND P S RAGHAVARAMA SASTRI

JUDGEMENT

(1.) This is an application for leave under Section 171, Companies Act.

(2.) The facts are : Messrs. T.V. Purushotham & Co. dealing in wines took a lease of portion of the Subhodaya Buildings, Mount Road, Madras, from the voluntary liquidators of the Subhodaya Publications Ltd., Messrs. C. Vasudevan and Raghavarama Sastri. In para. 2 of the affidavit of T.V. Satyanathan, it is stated that the rent for the said portion of the premises was agreed at the time of the tenancy at Rs. 200 p.m. and that subsequently the applicants learnt that according to the valuation of the building by the Corporation of Madras at Rs. 500, the said rent of Rs. 200 for the portion of the premises was too high. Therefore the applicants are stated to have filed Appln. No. 1675 of 1954 before the House Rent Controller, Madras, for fixing the fair rent. In the reply affidavit filed by the company it is stated that the voluntary liquidators agreed to rent the portion first at Rs. 150 p.m. and wanted two months' rent in advance and when on the next day the applicants sent to the voluntary liquidators a cheque for Rs. 300/-, they changed their mind and demanded Rs. 200 p.m. On the other hand, the voluntary liquidators state in their counter affidavit that they did not ask for Rs. 150 in the first instance and changed it to Rs. 200 tbe next day, that they fixed the sum of Rs. 200 p.m. as the rent after ascertaining on measurement that the portion of the building which the applicants were taking on lease was one-third of the total extent of the premises, -- the other portions being occupied by Messrs. Gordon Press and a book-binder, Thyagi, -- for which the previous tenants Messrs. Parsons and Whittmore were paying Rs. 600 p.m. The voluntary liquidators have now got converted into Provisional Liquidators. The applicants want to continue the proceedings before the Rent Controller taking the leave of the Court under Section 171, Companies Act, alleging that they are now paying rent at Rs. 200 p.m., that they want the rent to be assessed by the Rent Controller and fair rent fixed and that for that purpose they should be allowed to continue the proceedings initiated before the Rent Controller.

(3.) Section 171, Companies Act, runs as follows.