JUDGMENT : This is a petition filed under S. 100 of the Indian Companies Act, 1956, on which our case law is thoroughly sparse.

2. The petitioner is Panruti Industrial Co. (Private) Ltd. It deals in oil and oilseeds etc. The nominal capital of the company is Rs. 3,00,000, divided into 600 shares of Rs. 500 each, of which 323 shares have been issued and are fully paid up. The company has sustained as on 31st March 1958 a net unabsorbed loss of Rs. 81,640. Consequently, the Board of Directors at the meeting held on 6th October 1958 resolved to reduce the share capital paid up by Rs. 300 per share and to appropriate a sum of Rs. 96,900 realised thereby to wipe off the loss in the profit and loss account, the preliminary expenses account and build up a reserve for bad and doubtful debts, and to lay by a reserve fund.

Therefore, under the provisions of S. 100 of the Indian Companies Act, 1956, and in pursuance of the powers in that behalf contained in the Articles of Association, the company by a special resolution of its shareholders duly passed at a meeting convened for that purpose on 15th November 1958 (sic) that the share capital be reduced as set out above. The reduction of