Case Analysis

This case laid down a basic rule that if a director had an interest in a corporate transaction, the transaction is voidable at the company's will, and it is the duty of directors to avoid any possibility of a conflict of interest.

In this case the Madras High Court opined that the writ of mandamus should not be issued when the purpose of the suit is to have the rights of the plaintiff declared, and there stands no issue for the enforcement of any obligation of the parties involved.