The facts may be briefly stated.
2 lakhs within fifteen days from the date of service of the order, and in default to pay interest thereon at the rate of 6 per tent per annum till the date of realisation.
In pursuance of the resolution dated July 15, 1955, of the Directors of the Company made an initial instalment of Rs.
Rent Control Bevision High Court, powers of Illegal subletting If companyfined to first sub letting Delhi and Ajmer Rent Control Act, 1952 38 of 1952 , 88.
More than a year after wards, the landlords gave the tenant a numberice to quit and filed a suit for his eviction inter alia on the ground that he had sublet the premises without their companysent.
21/XV of 1958.
In the reply numberice the appellant promised to pay the arrears of rent as early as possible, but stated that he had all along been subletting portions of the premises to others, except the portion under his occupation.
It may be mentioned that in the written statement the fact that the premises were sublet to tenants was number denied.
41 Purani Mandi, Ajmer, companysists of a large number of rooms.,
2 lakhs recei ved by the trust from the Company in December, 1955, and the appellants by their letter dated December 10, 1957, having denied liability to refund the amount, the Corporation applied on March 14, 1958 to the Life Insurance Tribunal companystituted under the Life Insurance Corporation Act for an order that the trustees be ordered jointly and severally to pay to the Corporation the sum of Rs.2 lakhs with interest thereon at the rate of six per cent per annum from the date of payment to the trustees.
13 1 b , 35.
2 lakhs was paid out of the Shareholders Dividend Account which was distinct and separate from the general assets of the Company, and under the Articles of Association money standing to the credit of the Shareholders Dividend Account being the exclusive property of the shareholders and number of the Company, was held by the Company for and on behalf of the shareholders and in trust for them that the shareholders had absolute right of disposal over the said account and the shareholders of the Company having resolved to donate Rs.
9 of s. 2 of the Insurance Act and carrying on life insurance business all his business if he carries on numberother class of insurance business.
C. Mathur, for the appellant.
Shareholders Dividend Account.
The judgment of the Court was delivered by SHAH, J. This is an appeal from the order dated December 20, 1958, of the Life Insurance Tribunal in case No.
As the appellant did number companyply with the terms of the numberice, the respondents filed on August 2, 1954, Civil Suit No.
5,000/ to the trustees and the balance of Rs.
The learned Subordinate judge decreed the suit, holding that the numberice was valid and that the appellant was liable to be evicted under s. 13 1 b of the Delhi and Ajmer Rent Control Act, 1952 XXXVIII of 1952 , hereinafter called the Act, as he had sublet portions of the premises without the companysent in writing of the landlords On appeal the Senior Civil judge, Ajmer, allowed the appeal.
The tenant resisted the suit on the grounds that the numberice to quit was illegal and that there was numberillegal sub letting as companytemplated by s. 13 1 b of the Delhi and Ajmer Rent Control Act, 1952, as he had merely inducted a new sub tenant in place of an old one.
2 lakhs to the trust out of that account in exercise of their absolute ownership and power of disposal over the said fund, the payment companyld number be called in question by the Company or by any body purporting to act on behalf of the Company, for if the Company had number been taken over by the Corporation, the impugned payment companyld number have been challenged as ultra vires, and the powers of the Corporation were number larger in scope and ambit than that of the Company.
The plaint was later on amended.
He held that the numberice issued to the appellant was short by 24 hours and that he had numberright to sublet the premises without the written companysent of the landlord, though there where sub tenants in the premises when the appellant took the lease.
Appeal by special leave from the order dated December 20, 1958, of the Life Insurance Tribunal, Nagpur in Case No.
The suit was filed for eviction, and the ground for eviction was two fold, viz.,
The landlords filed a second appeal before the High Court and the High Court allowed the same holding that after the expiry of the lease by efflux of time the tenant was a statutory tenant and numbernotice to quite was necessary.
Against the order, this appeal with special leave is filed.
Constitution of a separate Shareholders Dividend Account in Life Insurance Companies was necessitated because of s. 49 of the Insurance Act, 1938, which prohibited insurers of certain classes and the Company is an insurer of that class from carrying on the business of life insurance, from utilizing directly or indirectly any portion of the life insurance fund or of the fund of such other class or sub class of insurance business, as the case may be, for the purpose of declaring or paying any dividend to shareholders or any bonus to policy holders or of making any payment in service of any debentures, except a surplus shown in the valuation balance sheet in Form I as set forth in the Fourth Schedule submitted to the Controller as part of the abstract referred to in s. 15 as a result of an actuarial valuation of the assets and liabilities of the insurer.
On October 13, 1935, the said building was taken on lease by the appellants father for a period of one year on a rent of Rs.
The United India Life Assurance Company Ltd. hereinafter called the Company incorporated under the Indian Companies Act, 1882, with the principal object of carrying on life insurance business in all its branches was registered as an insurer under the Life Insurance Act, VI of 1938 for carrying on life insurance business in India.
50/ per share on the paid up capital of the Company, and it was resolved that dividend at the rate be paid out of the Shareholders Dividend Account in respect of all shares to such persons as were registered as holders of shares.
The objects of the Trust were manifold, e. g. to establish and maintain scholarships, stipends, allowances to be awarded to Indian students for prosecuting studies, to provide chairs or lecturerships, to companyduct companypetitions to test proficiency in the art of essay writing or speaking, to promote art, science, industrial, technical or business knowledge including knowledge in banking, insurance, companymerce and industry, to establish and maintain subsidies or support charities in India engaged in improving human relations in industrial or companymercial affairs, to establish and maintain or support any educational institution or libraries in India for imparting general, technical or scientific knowledge and to give subscriptions or donations or to render financial assistance to any educational or other charitable institution in India.
Every resolution of the Company directing payment out of the Shareholders Dividend Account is number a resolution declaring dividend.
POORAN CHAND V. MOTILAL OTHERS J. IMAM, J. L. KAPUR.,
Held, further, that the tenant had sub let the premises within the meaning of s. 13 1 b i of the Act.
The landlords executed a lease of a residential premises in favour of the tenant for one year.
Appeal by special leave from the judgment and decree dated July 18, 1961, of the Rajasthan High Court in Civil Regular Second Appeal No.
On September 30, 1957, the Life Insurance Corporationwhich will hereinafter be referred to as the Corporation called upon the appellants to refund the amount of Rs.
The directors had at the same meeting recommended payment of an interim dividend free of income tax at Rs.
762 of 1954 in the Court of the Subordinate Judge, First Class, Ajmer, against the appellant for eviction, forrecovery of arrears of rent and for other reliefs.
K. SUBBA RAO and J. R. MUDHOLKAR JJ.
50/ per month.
90 of 1960.
On July 15, 1955, at an extraordinary General Meeting of the share holders of the Company, the following resolution, amongst others, was passed Resolved that a donation of Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
the rent was number paid and that the appellant had sublet the premises.
In that numberice it was alleged that the appellant was in arrears of rent and that he had also sublet the property.
The appellant companytested the suit on various grounds and particularly on the ground that it was number maintainable.
Undoubtedly the amount was payable out of the Shareholders Dividend Account but by the impugned resolution numberdividend was declared.
400 of 1961.
2 lakhs be sanctioned from out of the Shareholders Dividend Account to the M. Ct.
On August 8, 1952, a fresh lease was executed in favour of the appellant on an enhanced rent of Rs.
Under the said lease the tenacy was to companymence from August I., 1952.
M. Chidambaram Chettyar befitting his services to various institutions and organisations with which he was companynected, and to industry companymerce, finance, art and science in general and the great encouragement he gave to education, training, research and promotion of human relationship, and with that object the settlers had declared, transferred and delivered to the trustees a sum of Rs.
and the respondents are its owners.
On July 10, 1950, the respondents gave a lease of the said building in favour of the appellant for a period of one year on a rent of Rs.
1,95,000/ was paid on December 15, 1955.
The trial Court decreed the suit but on appeal the Civil judge dismissed it on the ground that the numberice to quit was invalid.
D. Sharma, for the respondents.
On the date of this resolution, appellants 2 4 were Directors of the Company, appellant 4 being the Chairman of the Board of Directors.
70/ per month.
Purushottam Tricumdas, J.B. Dadachanji, O.C. Mathur and Ravinder Narain, for the appellants.
December 11.
624/1962.
December I 1.
M. Chindambaram Chettyar Memorial Trust proposed to be formed with the object, inter alia, of promoting technical or business knowledge, including knowledge in insurance.
25,000/and interest, rents, dividends, profits and other income thereof to be held upon Trust for the objects and purposes mentioned in the deed.
65/ per month.
The Directors have to recommend payment of dividend at a certain rate, and a resolution declaring dividend so recommended or at a smaller rate may alone be passed.
21/XV of 1958.
Appellants 2, 3 4 were the trustees numberinated under the deed of trust, and the first appellant was appointed a trustee under cl.
Resolved further that the Directors be and are hereby authorised to pay the aforesaid sum to the Trustees of the aforesaid Trust when it is formed.
CiviL APPFLLATE JURISDICTION Civil Appeal No.
On December 6, 1955, five settlers including the Company executed a deed reciting that the settlers desired to establish a charitable trust for companymemorating the name of the Late M. Ct.
September 1, 1956 was numberified as the appointed day, and on that day, all the assets and liabilities of insurers including the Company stood transferred to and vested in the Life Insurance Corporation.
The appellants also companytended that as trustees they were number personally liable to refund the amount claimed.
K. Daphtary, Solicitor General of India, S. Pathak, B. R. L. Iyengar, J. P. Shroff and L. Hathi, for respondent No.
On, June 27, 1954, the respondents issued a numberice to the appellant, through their Advocates, calling upon him to vacate the premises by midnight of July 31, 1954/August 1, 1954.
The building situate at No.
The judgment of the Court was delivered by SUBBA RAO, J. This appeal by special leave is directed against the judgment and decree of the High Court of judicature for Rajasthan at jodhpur setting aside those of the Senior Civil judge, Ajmer, and restoring those of the Subordinate Judge, First Class, Ajmer, decreeing the suit for eviction from the suit premises filed by the respondents against the appellant.
On July 1, 1956, the Life Insurance Corporation Act, 1956, was brought into force.
It was alleged by the Corporation that the resolution dated July 15, 1955 as well as the payments made in pursuance thereof were ultra vires the Company and void and of numbereffect in law, that the Memorandum of the Company did number authorise such payment, that making of such a donation was number in the interests of the Companys business number was it a generally recognised method of companyducting the business and by the donation numberdirect or substantial advantage accrued to the Company.
Hence the present appeal.,
8 of the deed.
To maintain a reserve account for payment of dividends, Articles 116 and 117 provide that out of the surplus shown in the valuation Balance Sheet, interest on the paid up capital at the rate of 6 per cent per annum for each of the years companyered by the valuation period and of a ten per cent share of the remaining surplus shall be set apart and be carried over to the .
By s. 7 of that Act on the appointed day all the assets and liabilities appertaining to the companytrolled business of all insurers were to stand transferred to and vested in Life Insurance Corporation of India.
The appellants by their written statement submitted that the Directors of the Company were authorised by the Articles of Association of the Company to make donations towards any charitable or benevolent object or for any public, general or useful object, that the amount of Rs.
The impugned resolution was therefore one donating an amount to the trust, and number declaring dividend payable on behalf of the shareholders to the trust.
By order dated December 20, 1958, the Tribunal directed the appellants to pay jointly and severally Rs.
