TMI Blog1945 (2) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... ding relief to its members or their nominees on their retirement from service. It is a registered body. It is a body which is incorporated under the Companies Act, 1913, with its registered office at Nagpur. The plaintiff became a member of the All India Railwaymen's Benefit Fund, Nagpur, on his application, dated 29th April 1932. That application, is in a printed form which contains the following condition: "I have understood the memorandum and articles of association of the fund and bind myself and claimants on my behalf to abide by the rules of the fund as they now stand or as modified from time to time." When he was enrolled as a member he was aged 42 years. He made the requisite annual payments until he retired on 6th November 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly passed and further that the plaintiff as a member of the association, who had agreed to abide by the rules of the fund as modified from time to time was bound by those resolutions and the consequent amendment of the articles of association. The amendment, which the resolutions introduced, was that a scheme known as guaranteed scheme was substituted for the original dividing scheme. The lower Court affirmed the defendant's contention and dismissed the suit. The lower appellate Court took the contrary view that the guaranteed scheme was wholly inconsistent with the contract which was made on the basis of the dividing scheme between the parties and that the adoption of the new where constituted a breach of the contract. It therefore held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng claims within certain time limits, or on the principle that the premiums payable by a policy-holder depend wholly or partly on the number of policies becoming claims within certain time limits." Then proviso 2 to sub-section (1) of that section is as follows: "Provided further that an insurer who continues to carry on insurance business on the dividing principle after the commencement of this Act shall withhold from distribution a sum of not less than forty per cent. of the premiums received during each year after the commencement of this Act in which such business is continued so as to make up the amount required for investment under section 27." The respondent retired on 6th November 1940 and his claim accrued on that day. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the promulgation of the. Insurance Act (IV of 1938). It is pertinent to observe that the association was incorporated and registered under the Companies Act of 1913. Section 20 of that Act authorises a company to alter or add to its articles by a special resolution and declares that any alteration or addition so made shall be as valid as if originally contained in the articles and be subject in like manner to alteration by special resolution. It has been held that a company cannot deprive itself of the statutory power to alter its articles of association either by statement in the articles or by a contract that they shall not be altered: Andrews v. Gas Meter Company [1897] 1 Ch. 361 , Chithambaram Chettiar v. Krishna Aiyangar [1910 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the House of Lords in British Equitable Assurance Co. Ltd. v. Baily [1906] AC 35 . There can be no question as to the power of the All India Railwaymen's Benefit Fund to amend their articles of association as they did by the resolutions passed on 23rd September 1939 and 28th April 1940. The respondent had notice of both these meetings and he has said nothing against the regularity of the resolutions passed. The lower appellate Court misdirected itself in relying on Hari Chandana v. Hindustan Co-operative Insurance Society [1925] 52 Cal. 239; AIR 1925 Cal. 690 , as an authority endorsing its view. It permitted itself to be guided more by the decision than by the reasons for that decision. In that case the principle was accepted t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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