Judgement

SHAH, J. :- The Grain Chamber Ltd., Muzaffarnagar, a Company registered under the Indian Companies Act, 1913 with a share capital of Rs. 1,00,000 divided into 1000 shares of Rs. 100 each, was formed for the purpose of carrying on business of an exchange in grains, Cotton, sugar, gur, pulses and other commodities. By Article 5 of its Articles of Association no person or firm could remain a member of the Company who was found not to be doing any transaction or business through the Company for a continuous period of six months By Article, 46 it was provided that a member of the Company who owned 10 shares of the Company in his own name or in the name of the firm of which he was a proprietor or partner may be elected a director of the Company. By Article 51, until otherwise fixed, the quorum in the meetings of directors was to be four.

2. In the years 1949 and 1950 the Company was carrying on business principally in "futures" in gur. The method of carrying on business in "futures" was explained as follows, by the parties to the dispute in an agreed statement submitted before the Company Judge: The transactions for sale and purchase of gur have to be in the units called Bijaks