Cases Referred:

Fram Nusserwanji Balsara v. State of Bombay, 52 Bom. L.R. 799, A.I.R. (38) 1951 Bom. 210, 52 Cr. L.J. 80; A.K. Gopalan v. The State of Madras, 1950 S.C.R. 88, A.I.R. (37) 1950 S.C. 27, 51 Cr. L.J. 1383; Tain Bug Taim v. Collector of Bombay, 47 Bom. L.R. 1010, A.I.R. (33) 1946 Bom. 216, 47 Cr. L.J. 594; Commissioner of Inc.-tax v. Sir Purshottamdas, 48 Bom. L.R. 141, A.I.R (33) 1946 Bom. 401; Bhundal Panda v. Pandol Pos Patil, 12 Bom. 221

Chagla C.J.

1. The Sholapur Spinning Weaving Co., Ltd., was incorporated with an authorised capital of RS. 48,00,000 divided into 1590 fully paid up ordinary shares of Rs. 1,000 each and 20 fully paid up ordinary shares of Rs, 500 each 32,000 partly paid up redeemable cumulative first preference shares of Rs. 100 each. Therefore, the present paid up capital of the company is Rs. 32,00,000, Rs. 16,00,000 being fully paid up ordinary shares Rs. 16,00,000 being partly paid up preference shares, Rs. 50 being unpaid on each of the 32,000 cumulative preference shares. On 27-7-1949, the directors of the mills gave a notice to the workers that the mills would be closed, pursuant to this notice the mills were in fact closed on