Order.-The Authorised Officer, Land Reforms, Coimbatore, is the petitioner. One A. G. Dhamodaraswami Naidu, held on 6th April, 1960, an extent of 118.016 ordinary acres equivalent to 38.528 standard acres of agricultural land. As he was entitled only to hold 30 standard acres under the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961, action was taken by the statutory functionaries to fix the ceiling limit. On the publication of the draft statement under section 10 (1) of the Act, Dhamodaraswami Naidu, who was alive on that date, filed objections thereto that the above extent reckoned by the statutory officers included his holding in an agricultural company known as Messrs A. G. D. (Private) Ltd. and if the extent of his shareholding in the agricultural company is deducted, there would be no excess in his hands for the same being declared as such and taken over by the Government under the provisions of Act LVIII of 1961. But the Authorised Officer held that Dhamodaraswami Naidu’s shareholding in the limited company should also be taken into account for computing the excess. It also appears that Dhamodaraswami Naidu transferred such shares in the above company in favour of a trust. The Authorised Officer would not take cognisance of such a transfer and ultimately declared the surplus for the holding of Dhamodaraswami Naidu at 8.528 standard acres. The appeal by the legal representatives of Dhamodaraswami Naidu to the Land Tribunal (The Subordinate Judge, of Coimbatore) was successful. It is as against this, the present civil revision petition has been filed by the State represented by the Authorised Officer, Land Reforms,. Coimbatore.

2. It is conceded by the learned Government Pleader that if the shareholding of the late Dhamodaraswami Naidu in Messrs. A. G. D. Private Limited, Appanaickenpatti, Coimbatore, is excluded for purposes of computing the ceiling limit, then, there would be no excess land in the hands of the respondents (the heirs of Dhamodaraswami Naidu) for being taken over by the State under Act LVIII of 1961.

3. The only question argued before me is that the shareholding in an agricultural company should also be reckoned for purposes of calculating the excess in the hands of a land-holder and that the Authorised Officer was right in having taken the one-fourth of the share capital held by Dhamodaraswami Naidu in the private limited company for purposes of computing the excess holding according to the Ceiling Act. On the other hand, the learned Counsel for the respondents would say that as no share-holding of a shareholder in a company could be valued as if it is owned by him or of which he is the proprietor, and as that could not be done under the provisions of the Companies Act of 1956, the process adopted by the Authorised Officer in including the shareholding of Dhamodaraswami Naidu, is obviously erroneous and against law and that, therefore, the order of the Land Tribunal is correct.

4. I have perused the certificate of incorporation and the memorandum of Articles of Association of Messrs A. G. D. Private Ltd., in which Dhamodaraswami Naidu was a shareholder. The objects for which the company was established are, to carry on the business of agriculture and to acquire by purchase, taking on lease or otherwise land suitable for cultivation and agricultural operations and to carry on other business to further the above objects of the company. The company is, therefore, an agricultural company within the meaning of Act LVIII of 1961.

5. I shall now briefly race through the relevant provisions of the Act to appreciate the respective contentions of counsel. Section 3, clause (2) of Act LVIII of 1961 defines “agricultural company” as meaning any company formed for the purpose of carrying on any business that has for “its main object the acquisition of gain by the company” from agri• cultural land.

6. Section 3 (7) of the Act defines “ceiling area” as meaning the extent of land which a person is entitled to

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