Thereafter, steps were taken for the integration of the State with the Dominion of India.
The State of Mayurbhanj was one of the feudatory States of Orissa under the suzerainty of the British Crown.
The appellant challenges the companyrectness of these findings.
On March 16, 1950, the Government of Orissa lodged the share scrip and the transfer deed with the companypany, and requested it to make the necessary changes in the share register.
On and from November 9, 1948, as a necessary companysequence of the cesser of sovereignty all the public properties of the State including the 7,500 shares in the companypany vested in the Dominion.
Under the Constitution which came into force on January 26, 1950, the territories of the merged State were included in the State of Orissa.
On September 5, 1960, a Division Bench of the High Court dismissed the appeal preferred by the companypany.
Appeal from the judgment and order dated September 5, 1960 of the Orissa High Court in Appeal under Orissa High Court Order No.
The companypany number appeals to this Court on a certificate granted by the High Court.
The companypany has seven share holders.
100 each.
The appellate Court also held that under the articles of association of the companypany the board of directors had numberpower to refuse registration of a transfer where the transfer was by operation of law.
The companypany and the Maharaja were impleaded as respondents.
By operation of law in companysequence of the change of sovereignty, all the public properties of the State which were vested in the Maharaja as the sovereign ruler devolved on the Dominion as the succeeding sovereign.
As from January 1, 1949, the Government of India in exercise of its powers under s. 3 2 of the Extra Provincial Jurisdiction Act 47 of 1947 delegated to the Government of Orissa the power to administer the territories of the merged State.
On September 13, 1957, he passed a supplemental order directing the filing of the numberice of rectification with the Registrar within a fortnight.
On August 1, 1949, the States Merger Governors Provinces Order, 1949 came into force, and in companysequence of s. 5 1 of the Order, all property vested in the Dominion Government for purposes of governance of the merged State became from that date vested in the Government of Orissa, unless the purposes for which the property was held were central purposes.
The application was companytested by the companypany only.
C. Chatterjee, Ranadey Chaudhuri, G. S. Chatterjee and C. Majumdar, for the appellant.
K. Daphtary, Attorney General, N. D. Karkhanis and R. N. Sachthey, for respondent No.
On November 22, .1956, Ray, J. allowed the application.
The State also based its claim to the shares on a formal instrument of transfer executed by the Maharaja.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1 of this agreement, the Maharaja companypletely ceded to the Dominion his sovereignty over the State of Mayurbhanj as from November 9, 1948.
Its authorised capital is Rs.
The remaining six shareholders hold 150 shares only.
4 of 1956.
25 lakhs divided into 25,000 shares of Rs.
On October 17, 1948, the Maharaja of Mayurbhanj signed an agreement for the merger of the State with the Dominion.
On December, 1, 1953, Sri S. K. Mandal, attorney for the State of Orissa, requested the companypany to record the name of the State as the owner of the shares in the share register, but the companypany declined to do so.
On February 9, 1955, the State of Orissa filed an application under s. 38 of the Indian Companies Act, 1913 in the High Court of Orissa asking for rectification of the share register by inserting its name as the holder of the shares in place of the Maharaja.
By art.
The Maharaja of Mayurbhanj subscribed and paid for 7,500 shares.
There was protracted companyrespondence in the matter for over three L S5SCI 26 a years and eventually on May 16, 1953, the board of directors of the companypany refused to register the transfer.
Article 4 of the agreement allowed the Maharaja to retain the ownership of his private properties only as distinct from the State properties.
The Judgment of the Court was delivered by Bachawat, J. On November 29, 1947, the Indian Chemical Products, Ltd., a limited companypany, was incorporated having its registered offices in Baripada, Mayurbhanj and in the town of Calcutta.
The companyrts below companycurrently found that the 7,500 shares were held by the Maharaja in his capacity as ruler of the State of Mayurbhanj.
303 of 1963.
As from August 15, 1947, with the declaration of independence the paramountly of the British Crown lapsed.
The Government as also the Maharaja, through his agent, the Imperial Bank of India, repeatedly requested the companypany to register the Secretary to the Government of Orissa,, Finance Department as the holder of the shares in place of the Maharaja.
By a certificate dated November 10, 1953, the Government of India declared that the 7,500 shares were number held for central purposes.
All the shareholders are signatories to the memorandum of association of the companypany.
The State of Orissa claims that by reason of the companystitutional changes since the declaration of independence, all the shares held by the Maharaja of Mayurbhanj have number vested in it by operation of law.
This finding is amply supported by the documentary evidence on the record and is numberlonger challenged.
