SHA MULCHAND & CO. LTD.(IN LIQUIDATION) vs JAWAHAR MILLS LTD.

The Supreme Court held that the forfeiture of shares was invalid due to insufficient notice as required under Section 38 of the Companies Act, 1913. The Court ruled that the plea of abandonment of right, which is an aggravated form of waiver, acquiescence, or laches, could not be sustained on the same facts that did not support a plea of waiver or estoppel. The Court affirmed that mere delay does not equate to abandonment of rights, thus allowing the rectification of the share register as per Article 120 of the Limitation Act, 1908.