Judgement

JAGANMOHAN REDDY, J.:- This appeal is by certificate against the judgment of the High Court of Bombay varying the judgment and decree passed against respondents 1 to 4 by the District Judge of Nagpur on an application under Section 235 of the Indian Companies Act 7 of 1913 - hereinafter called the Act .

2. It appears that in or about April 1949 the Industrial & Agricultural Engineering Company (C.P.) Ltd. - hereinafter referred to as the Company was formed under the Act with its registered office situated at Nagpur. From the date of the Company s incorporation till August 27, 1952 one Shantilal Nemchand Shah respondent 5 was the Managing Director, while responents 1 to 4 were the Directors of the Company. On August 27, 1952, respondent 5 resigned as Managing Director and in his place two Directors C.V.Krishnamurthi respondent 2 and Mr. Ganpatram responent 3 were appointed Directors. These two new Directors were the employees and Directors of a concern known as Industrial & Agricultural Engineering Company (Bombay) Ltd. - hereinafter called the Bombay Company . Respondent 4 T. K. Shamu is the cousin of respondent 1 Raghawa Desikachar. There was also a partnership firm co