Judgment

SHAH, J. : A partnership styled P. K. N. was carrying on money-lending business in several towns in India and also in the Federated States of Malaya. In the course of its business the P. K. N. firm acquired rubber estates and other immovables in the Districts of Murar and Segamat in the Federated States of Malaya. On December 4, 1937 a private limited company was registered in the name of P. K. N. Company Ltd. - hereinafter called the Company - under the Pudukottai Company Regulation V of 1929 with its head Office at Viswanathapuram, in the territories of His Highness the Maharaja of Pudukottai. The share capital of the Company was of the face value of 6,60,000 Malayan dollars. Between March 23, 1939 and July 8, 1939, an area of more than 3,000 acres of rubber plantations, several houses and open plots of land, which were the assets of the P. K.N. firm were transferred to the Company for an aggregate consideration of 16,50,000 Malayan dollars. In consideration of the transfer of these properties, the Company allotted shares of the face value of 6,60,000 Malayan dollars to the partners of the firm of P. K. N. and the balance remained outstanding as a debt due by the Compan