A CLAIM FOR CALLS.

Franklin Times, Volume 9, Issue 776, 17 October 1922, Page 4

A CLAIM FOR CALLS.

ACTION BY ELECTRIC COMPANY. A case of considerable local interest was heard in the Supreme Court in Auckland lasit week before Mr Justice Herdman. The Franklin Electric Supply Trading Co. # Ltd. (Mr Towle) sued Algernon James Lowe, a Waiuku farmer, for £62 10s, allotment money, in respect of 500 shares, and £125 in respect of two calls of 2s 6d each.

For the plaintiff company it was stated 'that defendant agreed to take 500 shares in the company. He did not sign the application; form, but paid £62 10s for a ca)U of 2s 6ti per share. The directors allotted; him 500 shares on February 21st. 1921When a further call was made defendant repudiated the transaction, and demanded the return of the £62 10s he had paid. For the defence .it was argued that in the first place defendant was to have had shares in a company not yet registered whdreas the plaiptiff company was already in existence. In. the second place, if there was a contract it was induced by nfisrepresen- * tation ; and further, assuming the existence of a contract it was repudiated before the shares were allot* ted WJJliam McEwan gave evidence as to defendant applying to .him for shares in the company. Replying to> Mr Hanna, witness denied that he had induced defendant to take the shares by telbng him the first half of the instalment be spreadovdr two years. He might have told him that if he took up shares it would help witness to sell other shares in the neighbourhood. Defendant denied having ever received an application form from Me— Ewan, Mr McEwan told him .that half the share money would not be called up for two years and tne company would pay'a good dividend. judgment was given for the plaintiff company for the full amount of the claim and also on (the defendant’s counter-claim for £62 10s,_ with costs in both cases.