( 1 ) THESE are two connected appeals arising out of a suit for recovery of rupees 1280-13-4 brought by the respondent against the appellant.

( 2 ) THE plaintiff is a limited liability Company called the Universal Film Company Limited, lucknow. It went into voluntary liquidation on 13th December 1941, and Mr. Kashi Prasad, advocate, was appointed liquidator. Rai Krishna Pal Singh, the taluqdar of Birapur, who is now represented by the Deputy-Commissioner of Pratapgarh in charge of the Court of Wards, purchased 100 shares of the Company at RS. 10 each share for a sum of Rs. 1000. These shares were allotted to him on 25th November 1936. Rai Krishna Pal Singh paid Rs. 250 upon allotment and he was still liable to pay the balance of Rs. 750 according to the Company. Rai krishna Pal Singh was a director of this Company also at one time. He did not pay the sum due from him, whereupon, the Company brought a suit for recovery of, that amount plus Rs. 513-13-4 as interest at 12 per cent. per annum according to Article 25 of the Memorandum and articles of Association (Ex. 5 ). The total sum claimed was Rs. 1280-134.

( 3 ) THE defence with which we are concerned in the presen