1940 (8) TMI 24

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... Nilakantan for the Appellant. C. Krishnaswami King and Partridge for the Respondent. JUDGMENT Leach, CJ.- The appellant claims to be a creditor of the Travancore National and Quilon Bank Ltd., which is now in liquidation under an order passed by this Court for its compulsory winding up. In February 1938 the appellant entered into an agreement with the bank under which the bank was to al....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r an order rescinding the contract and awarding him damages. Other reliefs were also asked for but the learned Judge refused to consider the application and directed the appellant to file a regular suit. The appellant contends that the learned Judge erred in so doing. In the first place he says that the learned Judge had no power to relegate him to a regular suit and in the second place that he sh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....order rescinding the contract. Of course if a contract has already been rescinded an application under this section will not lie, and it is the case of the liquidators that this contract has been terminated by a notice calling in the amount due on the overdraft. It is said that the liquidators had a right to do this because the contract between the appellant and the bank provided that the amount w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oof of his debt with the Official Assignee. If his claim is rejected, then he has the right of asking the Judge sitting in insolvency to reverse the Official Assignee's decision. The Presidency Towns Insolvency Act contains a section similar to Section 230-A of the Indian Companies Act, namely, Section 65. When it is not a question of rescinding a contract and assessing damages under Section 65 a ....