1931 (2) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the Registrar, Joint Stock Companies, under section 137(5) of the Indian Companies Act, took action under section 138 and appointed one Sheikh Din Mohammad to investigate the affairs of the Punjab Industrial Bank, Ltd. The investigator so appointed made his investigation and furnished a report, whereupon on the 8th of January, 1924, the Local Government, acting under section 141(3), passed an orde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or whereupon the Local Government preferred an appeal to this Court which came before Mr. Justice Jai Lal who, after an examination of the matter, dismissed the appeal. The Local Government represented by the Secretary of State for India has preferred this appeal under clause 10 of the Letters Patent and two questions have been argued before us. The first question was whether the debt in questi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ority does not affect the position of the secured creditors. Mr. Noad urged that inasmuch as it was considered advisable to give priority in certain cases, even to secured creditors, section 230 of the Indian Companies Act was enacted in order that certain specified Crown (and other) debts may be given a further preference. This contention is supported by a decision of the Bombay High Court in Mot....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....do not think that it is necessary for me to examine the English authorities cited. There can be no doubt that the provisions of section 229 of the Indian Companies Act make the rules of bankruptcy applicable as far as may be. Where, however, there is a conflict between the Indian Companies Act and the Insolvency Act, it is clear that the provisions of the Companies Act must be given effect to. An ....