Judgement

Mahajan J. - This is an appeal by special leave granted by the Privy Council and limited to the question of court-fee, viz. Whether on the memorandum of appeal presented to the High Court court-fee was payable under s. 7 (iv) (c) or Art. 17 of Sch. II, Court-fees Act.

2. The question whether the memorandum of appeal was properly stamped arose in the following circumstances : Edward Mills Co., Ltd., is a joint-stock company situate in Beawer, Ajmer Merwara. In accordance with the provisions of the articles of the company, one Seth Gadh Mal Lodha and Raj Sahib Moti Lal (respondent 2) were its chairman and managing director respectively since 1916. Seth Gadh Mal Lodha represented his family firm of Kanwal Nain Hamir Singh While Raj Sahib Moti Lal represented the joint family firm of Champa Lal Ram Swaroop. On 1-7-1938, Raj Sahib Moti Lal and his firm were adjudged insolvent by the Bombay High Court. The result was that respondent 2 had to vacate the office of managing director and the members of his firm also became ineligible for it. By a resolution of the Board of Directors passed on 18-71938, Gadh Mal Lodha was appointed to take the place of Raj Sahib Moti Lal as managing d