JUDGMENT

O. CHINNAPPA REDDY, J.:— Hulas Chand and Bilas Chand, original owners of a certain plot of land in Saharanpur, granted a permanent lease of the land to Patal Mills Ltd., in May, 1930. The annual rent was Rs. 75. The lessee was empowered to use the land for any purpose whatsoever. The rights of the lessee were expressly made transferable, Though the lease was permanent, there was a condition that the lessor could forfeit the lease if the lessee failed to pay rent for three consecutive years. On November 1, 1932, Hulas Chand and Bilas Chand transferred their interest to Budh Singh and Jialal: Jugal Kishore, became entitled to the rights of Budh Singh and Jialal by purchase under sale deeds dated April 27, 1943 and May 11, 1943, But Shankerlal and Piareylal (present plaintiffs) filed a suit for pre-emption against the vendors and Jugal Kishore and as a result of the decree passed in the suit, they became entitled to the lessors interest in the suit plot of land on August, 13, 1945.

2. Meanwhile the lessee Patel Mills Ltd. went into liquidation and Mehra was appointed voluntary liquidator of the Company on May 11, 1937 by a special resolution at a meeting of the creditors of th