Judgement

SUBBA RAO, J.: The facts that gave rise to this appeal may be briefly stated: On January 3, 1933, Messrs. Harinagar Sugar Mills Ltd. hereinafter called the company, was incorporated under the Indian companies Act, 1913 (Act VII of 1913), Narayanlal Bansilal was the Chairman of the Board of Directors of the company. He was also the karta and manager of the joint Hindu family consisting of himself, his sons and daughters. As such karta he purchased a large block of shares of the Company from and out of the funds of the joint family. The said family also owned a sugarcane farm at Harinagar in the State of Bihar. On March 8, 1956, Narayanlal Bansilal and his three sons sold the said farm to the Company for a sum of Rs. 40,00,000. Under the sale-deed the Company agreed to pay the price in installment. Though the Company paid a few installment, a sum of Rs. 25,00,000 still remained to be paid by it to the joint family. In July 1961, one of the sons of Narayanlal Bansilal filed Suit No. 224 of 1964 on the Original Side of the Bombay High Court against his father and others for partition of the joint family and others for partition of the joint family properties. Pending the suit,