These appeals are preferred from the Order of Ramachandra Iyer, J. (as he then was), dated 30th April, 1959 in Applications Nos 2182 and 2183 of 1958 whereby it was declared that the forfeiture of certain shares held by the respondents herein in the appellant-company is invalid and liable to be set aside and it was directed that, on payment by the respondents of the call money due by them in respect of their shares, the forfeiture effected by the company should be set aside. The only point for determination in these appeals is whether the appellant-company acted and complied strictly in accordance with the provisions of the Articles in forfeiting the shares of the respondents herein.

It is necessary to state the salient facts necessary for the purpose of the disposal of these appeals. The company called the New India Newtone Transport Company, Ltd., is a joint stock company concerned with the running of buses in the South Arcot District. The share capital of the company under its articles is Rupees One lakh divided into 500 ordinary shares of Rs.100 each and 500 preference shares of a like value. It is stated that subsequently the capital of the company was reduced,