Judgment

SARKARIA J.:- This appeal by certificate is directed against a judgment dated July 26, 1968 of the High Court of Judicature at Calcutta. The facts leading to this appeal are as follows:-

2. Jagannath Gupta & Co. (P) Ltd. the respondent herein, (hereinafter referred to as the Company) was incorporated in the year 1940 under the Indian Companies Act as a private Company limited by shares with its registered office in Calcutta. Its nominal capital was and still is Rs. 25,00,000 divided into 1000 ordinary shares of Rs. 2,500/- each with the entire capital paid up or credited as paid up.

3. Prior to 1940, Jagannath Gupta used to carry on business under the name and style of Jagannath Gupta and Co. as Karta of a Joint Hindu Family business. Subsequently, as a result of the family arrangement, the Joint Hindu Family trading partnership was converted, into a contractual partnership under the name and style of Jagannath Gupta & Co. It was thereafter converted into a private limited Company in 1940 as aforesaid.

4. Jagannath Gupta had four sons: Bidya Bhushan Gupta, Padam Chand Gupta, Moolchand Gupta and Bhim Sen Gupta. Bidya Bhushan Gupta had a son Mahadev Prasad who died in 1945 and a