NARAYANDAS SHREERAM SOMANI vs THE SANGLI BANK LTD.(With connected appeal)

The Supreme Court held that the allotment of shares to the nominees of the first appellant was valid despite the irregularity due to the first appellant's disqualification to vote under Section 91B(1) of the Indian Companies Act, 1931. The Court ruled that the respondent's affirmation of the allotment rendered it binding, and the first appellant was estopped from contesting its validity. Furthermore, the Court clarified that payment under the Indian Contract Act, 1872, can be established through accounting entries, not just cash transactions, thus upholding the claim for the loan amount of Rs. 100,000.