1950 (8) TMI 16

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....CJ. - This is a matter referred under Chapter V, rule 3, of the Original Side Rules. The applicant is the liquidator of the Sree Bank Ltd. which is in liquidation. The respondents were customers of the bank and it is alleged that when the bank went into liquidation the respondents owed the bank on an overdraft account a sum of Rs. 32,459-12-9. The liquidator of the bank made an application t....

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....Banking Companies Act as amended by the Banking Companies (Amendment) Act, 1950, dealing with the question of limitation governing applications made by a banking company in liquidation. The section is section 45F which is in these terms: "Notwithstanding anything to the contrary contained in the Indian Limitation Act, 1908 (IX of 1908), or in any other law for the time being in force, in comput....

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....s matter because no proceedings by way of an application to recover the sum due from the respondents can be entertained. If the bank's case be true, then the respondents owe a large sum of money and are debtors to the liquidator of the bank. There is nothing in the Companies Act or the Banking Companies Act which permits a liquidator to recover debts from debtors of a banking company by summary....

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....on 45F which permits applications to be made for the recovery of debts and, therefore, the point that was urged in the court below really does not arise. In the present case no application for the recovery of this money would lie and as a suit must be brought the period of limitation for such a suit will be governed by the appropriate article in the Limitation Act read with section 45F of the Bank....