1935 (11) TMI 23

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... order of this Court, dated the 11th June 1935, the Official Liquidator of the Peoples Bank of Northern India Limited was authorised under Section 185 of the Indian Companies Act to take possession of the Amber Nath Mills situated near Bombay. The attorney for Lala Harkishen Lal, who was the ostensible owner of the Mills, filed objections. The matter has come before us to-day for decision. The li....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....shen Lal. Rs. 2,40,000 of the money thus put at his disposal was used by Lala Harkishen Lal to purchase the Amber Nath Mills. On the 19th of December the Manager of the bank sent a note to the Chairman asking him to which of his accounts this sum was to be debited. The reply from Lala Harkishen Lal was "place before Board, meanwhile take a promissory note." It is to be noted that this promissory n....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

...., therefore, adjourned the discussion of this particular piece of business from one meeting to another without coming to any decision. To go back a little, on the 30th of December, 1930, the money was debited to Lala Harkishen Lal's suspense account. Eventually on the authority of Lala Harkishen Lal alone this amount was debited to his account on the 9th of January, 1931. It has been argued by co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....breach of his duties as a trustee. It has been argued, however, that Section 185 of the Companies Act does not authorise the possession of the liquidator in a case where the title is disputed. The section reads as follows :- "The Court may, at any time after making a winding-up order, require any contributory for the time being settled on the list of contributories and any trustee, receiver, ba....