JUDGMENT

Young, J. - The liquidator of the Union Indian Sugar Mills Co., Ltd. (in liquidation) has at his disposal a surplus after paying all the creditors of the company. It therefore became his duty to divide this pro rata among the share-holders. He naturally proposed to divide this money among, those share-holders whose names appear upon the register of share-holders. The five applicants before me today however are not registered shareholders. They claim to hold the shares of one Lala Debi Datt, as security for loans advanced to him. As security for those loans they took the share certificates and blank transfers. These transactions took place sometime before the company went into liquidation. The mortgagees of the shares never took any steps to notify the company officially or to have their names registered as share-holders. They claim however that as Lala Debi Datt, was the Managing Director of the company and as he himself personally pledged these shares to them, the company must therefore be said to have had notice of the pledging of the shares and that thereafter the company had no lien upon the shares in question. The liquidator claims that Lala Debi Datt was indebted to t