Judgment

RAMASWAMI, J. :- In the month of August, 1942 the appellant company (hereinafter called the Company ) was incorporated with its registered office in the city of Jullunder dealing in sale and purchase of land as its substantial business. By a sale deed executed on November 24, 1944 the company purchased 646 kanals, 9 marlas of land from Harjit Singh for a sum of Rs. 32,326/-. The land was located in village Monanpura of District Sheikupura, now in West Pakistan. Out of the consideration for the sale, a sum of Rs. 9000/- was left with the company for payment to the previous mortgagees and the balance of the money was paid to Harjit Singh before the Sub-Register at the time before the Sub-Registrar at the time of registration. On the basis of the registered sale deed the company was allotted 27 standard acres and 11 1/2 units of land in village Bohani, Tehsil Phagwara, District Kapurthala in the year 1950 in lieu of the land abandoned in Pakistan. A sanad No. K2/4/8 dated March 9, 1950 was issued in favour of the company. There was consolidation of holdings in village Bohani and as a result of consolidation the area allotted to the company came to 23 kanals and 5 marlas. Out