Judgment

SHAH, J.: One Kishori Lal Jaiswal started a distillery business in the name of Kishori Lal and Sons and set up a factory at Karnal in the Punjab for manufacturing liquor. Kishori Lal died in 1928 leaving him surviving three sons, Durga Prasad, Ladli Prasad and Shanti Prasad. Durga Prasad who was the eldest surviving member became karta of the joint Hindu family, and continued the family business. On the death of Durga Prasad in 1934 leaving him surviving two sons Sajjan Lal and Madan Lal and his wife Suraj Mukhi, Ladli Prasad became the karta of the family and continued the business. By mutual arrangement on November 5, 1940 the joint Hindu family of the three branches was disrupted and the business of Kishori Lal and Sons was thereafter conducted as a partnership concern each branch having a third share therein. On March 23,1941 a private limited company called the Karnal Distillery Company Ltd. was incorporated under the Indian Companies Act,1913, and the business of Kishori Lal and Sons was taken over by that company. Under the final allotment of shares made by the Company on August 1, 1941-1004 shares were allotted to the branch of Durga Prasad, 1503 shares to Ladli