ISSUE:
Can somebody who is not among the original allottees of shares can make a claim for indemnity?
RULE:
This case concerns itself with the act of misrepresentation made in the prospectus. The concept of misrepresentation and fraud is given under Section 18 and 17 of the Indian Contract Act, 1872, respectively. The offender can be held liable for fraud under Section 447 of the Companies Act, 2013. The principle that evolved in this case was that an action of misrepresentation can only be brought by the misled party, or "representee", which means that only those who were an intended recipient of the representation may sue.