BALAKRISHNA AYYAR J.

The Link Industries Ltd., a public limited company incorporated in 1946, was ordered to be wound up on 8th February, 1956. In 1947, however, it was a going concern. On 13th August, 1947, the company issued 50, 000 shares of the nominal value of Rs. 10 each, and Ramanathan Chettiar, the applicant herein, took up 36, 555 shares on each of which he paid Rs. 5. At this time the Link Industries Ltd. was being managed by another limited liability company called Factors Ltd. of which A. C. K. Krishnaswami was managing director.

The case of the applicant is - here I quote from Exhibit P. 1, the letter which the applicant wrote to A. C. K. Krishnaswami on 15th April, 1949 - that at the time he took up these shares,

"it was expressly understood and agreed to that in the event of my taking the bulk of the shares of account of the non-subscription from the public, the shares will be Rs. 5 paid up only till such time as I am able to unload the 3/4 of my holding in the market at a little profit. The other day when you were kind enough to call on me the subject came up for discussion and I told you about the position." *

This letter, it may be explained, was written