MADANLAL FAKIRCHAND DUDHEDIYA vs SHREE CHANGDEO SUGAR MILLS LTD.

The Supreme Court held that the agreement to pay commission to promoters of a company, as per Article 3 of the Articles of Association, was rendered invalid under Section 76(1) and (2) of the Companies Act, 1956. The Court affirmed the trial court's decision that the commission exceeded the limits set by the Act, thus making the agreement unenforceable. Consequently, the appeal was dismissed, upholding the lower courts' rulings.