TMI Blog1922 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... to have his name registered in the books of the Bank in place of Sawan Mal-Gopi Chand. In November, 1913, however, the Bank failed and went into liquidation before the transferee had presented his deed of transfer to the Bank and thus the shares continued to stand in the name of Sawan Mal-Gopi Chand as before. It may be mentioned that the sum of ₹ 80 had not been paid by the defendant at the time of the transfer. In October, 1916, about three years after the above transaction, Sawan Mal-Gopi Chand brought a suit against Shiv Charan Das for the recovery of ₹ 80 as the price of the shares sold, and for establishing that the defendant was liable for any demands that the liquidators of the Bank may make from the person owning the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Indian Companies Act VII of 1913, and provides that the shares of any member in a Company shall be moveable property, transferable in manner provided by the Articles of the Company. The Articles of Association of the Lahore Bank, Limited, are on the record, and provide for a transfer of shares in the Company in a form prescribed in Article 30. He urges that the shares were transferred by his clients according to law and nothing further remained to be done by them. He relies on a note given under Section 34 of Mr. Ranga Chariar's Indian Companies Act, which says that the transferor is only bound to execute a valid transfer and hand it to the transferee and that there is no warranty on his part that the Company will accept the transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted for the price of the shares. It is urged that the present case is stronger than the Allahabad case referred to above, because here the Bank has never refused to register the transfer and would probably have registered it, if the transferee had promptly presented an application for the substitution of his name for the transferor. Mr. Mukerji in reply lays stress on the terms of articles 28 and 29 of the Articles of Association of the Lahore Bank, Limited, which provide that the Company may de-cline to register a transfer of shares without assigning any reasons therefor, and that the transferor shall be deemed to remain a holder of such shares until the name of the transferee is entered in the register in respect thereof. He contends tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Company had continued, but as the Company has come to grief, he incurs the liabilities which his predecessor-in-interest would have incurred regarding these shares. We think the suit was not properly described as one for specific performance of a contract. The contract was complete and no specific performance can be ordered under the circumstances but we grant the plaintiffs a decree for ₹ 80 which the defendant was bound to pay as soon as the deed of transfer was handed over to him, and hold that by virtue of the transfer that he obtained from Sawan Mal-Gopi Chand, the defendant became the owner of the 20 shares standing in the name of the latter in the books of the Lahore Bank, Limited, with all the rights and obligations attache ..... X X X X Extracts X X X X X X X X Extracts X X X X
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