Judgment

SHAH, J. : This is an appeal from the order dated December 20, 1958 of the Life Insurance Tribunal in case No.21/XV of 1958.

2. 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. On July 15, 1955 at an extraordinary General Meeting of the share-holders the Company, the following resolution, amongst others, was passed :

"Resolved that a donation of Rs.2 lakhs be sanctioned from out of the Share-holders Dividend Account to the M. Ct. M. Chindambaram Chettyar Memorial Trust proposed to be formed with the object, inter alia, of promoting technical or business knowledge, including knowledge in insurance.

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."

On the date of this resolution, appellants 2 and 4 were directors of the Company, appellant 4 being the Chairman of the Board of Directors. On December 6, 1