1949 (8) TMI 11

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....ng the amounts of loss occasioned in respect of the share brokerage, preliminary expenses and investments in unauthorised banks respectively...." The respondent having taken an assignment of the decree proceeded against the appellant in execution and applied to the Court for his arrest. The question arose whether under section 51 of the Civil Procedure Code the respondent was liable for arrest. He pleaded that he was a pauper and was quite unable to raise the money to discharge the decree. The Court however found that since he was a director and it was on account of his breach of duty that the loss had been sustained by the company, clause (c) of the proviso to section 51 applied, and "that the decree is for a sum for which the judgment-de....

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....ke us through the facts of the case in an attempt to prove to us that the appellant was in no way responsible for the loss that occurred; but we cannot, as the learned District Judge pertinently pointed out, go behind the decree itself. The judgment of this Court also shows that the appellant failed to do his duty. One of the earliest Indian cases that dealt with the duties of a Director towards the members of the company is New Fleming Spinning and Weaving Co., Ltd. v. Kessowji Naik [1885] ILR 9 Bom. 373, at p. 394. The learned Judge said :-- "My conclusion is that, (a) although the directors are not trustees in every sense of the term, they stand in a fiduciary relation towards their shareholders with respect to the funds and the busine....