Judgement

Appeal (No. 127 of 1930) from a decree of the High Court (November 20, 1929) rejecting the appellants application to remove their names from the list of contributories in the winding-up of a company in respect of certain shares.

The appellants were executors of the will of Lala Raghumal, who died on September 5, 1926, and is hereinafter referred to as " the testator." The respondents were the official liquidators of the Dehra Dun-Mussoorie Electric Tramway Co., Ld. (hereinafter referred to as "the company"), which on January 29, 1926, was ordered to be wound up.

By a verbal contract made on August 12, 1922, the terms being stated in a letter from the company dated September 13, 1922, the testator, who was already a share holder in the company, agreed to take additional shares to the face value of Rs. 1,25,000, and in consideration thereof the company agreed to place through him the orders for materials required for their tramway. In pursuance of the contract the testator, on August 12, 1922, had applied for shares of the above face value; the shares were allotted to him and he was entered in the register of shareholders in respect of them. On September 13, 1922, he paid t