LexJYOTI BHUSHAN GUPTA versus THE BANARAS BANK LTD.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
•> .. .. (li S.C.R. SUPREME COUR'l' REPORTS JYOTI BHUSHAN GUPTA v. THE BANARAS BANK LTD. (B. P. SINHA, c. J., K. SUBBA RAO, .J. c. SHAH and J.R. MuDHOLKAR, JJ.) 73 Limitation-Order of Higk Uourt directing contributories lo pay money to liquidator-Order if passed in exercise of urdi'nary original Civil jurisdict-ion-Executi9n a:i:pl-ication filed b£yond three years-If barred-Indian Limitation Act, 1908 (IX of 190~), Art. 183-Indian Companies Act, 1913 (VII of 1913), ss. 187 and l J.?9-Lettcrs Palent of the Allahabad High Court. The Banaras Bank Ltd. was ordr.red by the Allahabad High Court to be compulsorily wound up. The High Court passed an order under s. 187 of the Indian Companies Act, 1913, directing the appellants, whose namos had been placed on the list of contributories, to pay a certain sum of money to the Official Liquidator. The Official Liquidator applied for execution of the order more than three years after the making thereof. The appellants contended that the execution ap· plication, not having been preferred \\ ithin three years as prescribed by Art. 182 of the Limitation Act was barred. The Official Liquidator contended that the order was made in the. exercise of ordinary original civil jurisdiction by the High Court and the application was governed by Art. 183 which prescribed a period of limitation of twelve years. Held, that Art. 183 was applicable to the case and the application for execution was within time .. The order was made by the High Court in the exercise of its ordinary original civil jurisdiction as contempla!ed in Art. 183. Though the Letters Patent did not invest the High Court with any original jurisdiction it could be conferred by legislation. The Indian Companies Act, 1913, invested the High Court with the jurisdiction to order payment of amounts due by debtors of companies ordered to be wound up. The jurisdiction was ordinary, it did not depend on and extraordinary action on the part of the High Court. It was original as a petition for the exer- cise of it was entertained by the High Court as a court of: first instance and not as an appellate court, and since the High Court adjudicated upon the liability of the debtor to pay debts due by him to the company the jurisdiction was civil. In the matter of Candas Narondas, Navivahu and C. A; Turner, I. L. R. (1889) 13 Born. 520 and P. T. Munia Oervai 1'61 Oclobtr 12. 1!161 J_ro<i B/u,iha" Gu,,. V. The Banara; BaP«k LJd. Shah]. 74 StJPREMt<; COURT REPORTS [1962] Sl'PP. v. 1'/ie llunnman l!ctnk Ltd., 1.1..R. (195fl) Mad. 658, re· fcrrcd to. CrvIL APPELLATE JuRISJJt<.:TION: Civil Ap- peal No. !98 of 1936. A ppcal from tho judgment and decrco dated .\ugust 24, l!JiiO, of tho Allaha.b11d High Court in Execution First Appeal Ku. 399 of 194i. G<JFi N1ith Kunzru and Ganpat Rai, for tho appellants. . G. S. Pathak and G. C. Mathur, for the reepon· dent. 1961. October 12. J11c Judgment of the Court was delivered by SHAH, J.-Thc BanaraH Bank Ltd.-a public limited company having its registered office at Banaras-(hereinafter referred to as the Bank) was ordered on JI.larch l, 1940 to be compulsorliy wound up by the High Court of Judicature at Allahabad, and the Official Liquid&· tor was appointed to conduct the proceedings in winding up. On September 12, 1942, an order was made by the High Court under s. !Si of the Indian Companies Act, 1913 (VII of lul3) for pay. ment of unpaid rails and the appellants Jyoti .Bhushan Gupta and Gokul Chand, whose names had beon placed on the list of contri butorieR, were directed to pay with interest Rs. 95, 178/5/9 to the Official Liquidator of the Bank. This order was, by virtue of s. 199 of the Act, enforceable in the manner in which the decree of the High Court made in any suit pending therein may be enforced. On September 12, lll46, the order was transferred to the District Judge, Allahabad for execution. On September 23, 1946, the Official Liquidator ap· plied to the District Court, Allahabad for execution of the order dated September 12, 1942, and prayed that certain a.mounts due to the appellants be at- tached in ea.tiefaction of the claim. The execution proceedings were transferred by the J:>iatrict Judge .. ... ' (l) s.c.R. SUPREME OOURT REPORTS 75 to the Civil Judge, Allahabad. The appellants contended inter alia that as the application for execution was not preferred within 3 years
Excerpt shown. Read the full judgment & AI analysis in Lexace.