1938 (11) TMI 15

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....ORDER Young, CJ. - This is a petition by Khan Bahadur Mian Chiragh Din praying that the Court should make an order reducing the amount payable by him to the Liquidator of the Peoples Bank of Northern India. Before the Bank closed its doors, the Khan Bahadur owed the Bank money on three accounts. When the Company was wound up in May 1935 and an Official Liquidator was appointed on a report by th....

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....davit of the Official Liquidator, stating that he has investigated the affairs of such contributory or person and believes that the proposed compromise will be beneficial to the Company, and giving his reasons for such belief." It is clear from this Rule that the liquidator cannot consider a mere matter of pity or mercy. He must make out a case that the compromise will be beneficial to the Comp....

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....ng Co. ( Pearson's Case), it was held that the Court had no jurisdiction to order the liquidator in a winding up to a consent to a compromise with a contributory. In that case the Company Judge had taken a strong view that the contributory was in a very poverty-stricken condition and that the liquidator ought to accept a compromise which had been offered. The Court of Appeal set aside the order of....