1958 (9) TMI 42

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....Companies Act, 1913. The assets of the bank included two houses, one at Saharanpur which the bank had purchased in the year 1934 for Rs. 9,200, and the other house at Hardwar which the bank had purchased in the same year for Rs. 16,000. On February 17, 1941, an offer was received from one Roshan Lal of Rs. 18,000 for these two houses. The offer was laid before the committee of inspection which, on March 19, 1941, resolved that the official liquidator should endeavour to get the offer increased to Rs. 20,000, but if he did not succeed in doing so he should accept the offer of Rs. 18,000. Shri Roshan Lal refused to increase his offer, and on April 1, 1941, the. official liquidator reported to the Company Judge that the offer made of Rs. 18,0....

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....000. Sri Durga Prasad and Sri Roshan Lal now appeal. Two arguments have been advanced on their behalf. The first is that the original purchase of the two houses by Roshan Lal was not in fact a benami transaction. This argument was not strongly pressed and we agree with the learned Judge that in view of the pleadings it is not an argument now open to the appellants. A reply was filed by Sri Durga Prasad to the official liquidator's application and was adopted by Sri Roshan Lal. In. paragraph 4 of his reply Sri Durga Prasad says : "Accordingly for the purposes of the present proceedings it may be assumed that the transaction was benami without prejudice to the right of the opposite party to claim a decision of the real character of the tran....

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.... of Justice in England in matters relating to companies shall be followed so far they are applicable and not inconsistent with these rules and the Act." Such differences as there were between the powers of a liquidator in a compulsory winding up under the English and Indian Acts are not in our opinion material, and we do not think it necessary to refer to them in detail. What is important is that a committee of inspection is appointed under the Indian Act as it is under the English Act "to act with the liquidator": see section 178A(1) of the Indian Act and section 252(1) of the English Act. The argument for the appellants in substance is that no disabilities attach to members of a committee of inspection except such as are specifically pr....

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....eneral equitable principles, that they would be like any other trustees in that position, debarred from buying, or trafficking in the trust property." By section 20 of the English Bankruptcy Act, 1914, a committee of inspection is appointed "for the purpose of superintending the administration of the bankrupt's property by the trustee in bankruptcy." The purpose of the appointment of a committee of inspection under the Indian Companies Act is, as we have already pointed out, "to act with the liquidator" (section 178). Section 183 of the Act of 1913 then provides that subject to the provisions of that Act the official liquidator of a company which is being wound up by the court shall in the administration of the assets of the company and in....