Srinivasa Mills, Ltd, Madurai, was a public limited company incorporated under the Indian Companies Act on 7th January, 1946. A firm a partnership called Srinivasan and Co. was the managing agent of this Company. The terms of agreement between the managing agent and the company were reduced to writing and were attached to the articles of association of the company as Schedule A. The agreement provided that the managing agents should receive an allowance of Rs. 500 per month from the date of the registration of the company till the date of the commencement of the work by the company, and an allowance of Rs. 1,000 per month thereafter, after the Mill commenced work. At the inception the managing agent firm consisted only of three partners. Sri P. S. Thirumalai Iyengar subsequently became a partner of the managing agency firm under a written agreement with the firm. One of the terms of that agreement was that Thirumalai Iyengar should be the sole managing agent and should be the sole recipient of the remuneration provided for in the managing agency agreement with the company. He took charge of the management of the Mills on 10th June, 1948. The Board of Directors of the Sr