Once a company shows in its accounts any money under the head paid up capital than it will be presumed that share has been allotted

Last updated: 09 April 2012

Court :
COMPNAY LAW BOARD

Brief :
These two applications were heard on 1.3.2001. The learned Sr.Counsel for the petitioners, Shri Mitra, submitted as follows: At the time when the petition was heard, there was no document available with the petitioners to support their claim that the company had in fact allotted 175 shares to the 4 subscribers to the memorandum. However, in the month of October 2000, the petitioners were able to trace the balance sheets as on 31.3.1948 and 31.3.1949, These balance sheets would indicate that the 4 subscribers to the memorandum had paid money towards 175 shares and as such these shares must have been allotted during that year. If so, then, further allotment of 500 shares on 24.12.1949 ultra vires the memorandum. Now that proof of allotment of 175 shares has been placed before the CLB, it should declare the further allotment of 500 shares as null and void and rectify the register of members deleting the name of those who now hold these 500 shares.

Citation :
PETITIONERS: 1. Smt. Nupur Mitra 2. Smt. Jhumur Ghosh RESPONDENTS: 1. Basubani Private Limited 2. Smt. Roma Bose 3. Shri Himansu Bose