LexSHRI RAM NARAIN versus THE SIMLA BANKING & INDUSTRIAL CO. LIMITED
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
S.C.R.
SUPREME COURT REPORTS
603
SHRI RAM NARAIN
v.
THE SIMLA BANKING & INDUSTRIAL CO.
LIMITED.
[VIVIAN BosE, JAGANNADHADAS and
B. P. SINHA JJ.]
Banking Oom.panies Act, 1949 (X of 1949) as amended by Act
LII of 1958, ss. 45-A, 45-B, 45-0-Displaced Persons (Debts Adjust-
ment) Act, 1951 (LXX of 1951), ss. 8, 28-0verriding effect as against
all other laws-Pitrpose and policy of the two Acts-Tribunal under
Act LXX of 1951-Whether a Oourt-Transfer of proceedings
under s. 46-0 of the Banking Oompanies Act-Period of limitation.
The appellant, a displaced person, had a fixed deposit in the
Lahore Branch of the respondent Bank which had its head-office at
Simla, and he also had at the time a cash-credit account in the
Bank.
As the Bank refused to pay the amount of fixed deposit on
its maturity but adjusted it towards part payment of the amount
said to be due from him, he filed an application to the Tribunal at
Bans.rs.a under s. 4 of the Displaced Persons (Debts Adjustment)
Act, 1951, claiming the amount of the fixed deposit as a debt due
from the Bank. During the pendency of the application there were
proceedings taken for winding up the Bank in the High Court of
Punjab. On the 3rd January 1953 a decree was passed by the Tri-
bunal and the appellant filed an application before it for execution
of the decree, which, ultimately, was transferred to the Bombay
High Court under the provisions of the Code of Civil Procedure.
The appellant's application before the Bombay High Court for the
,.
attachment of the property belonging to the Bank and situate in
Bombay was ordered on the 18th June 1954. On the 26th June 1954
the Official Liquidator of the B&nk obtained an order from the
Punjab High Court purporting to be one under s. 45-C of the Bank-
ing Companies Act, transfening to itself from the Court of the
Banaras Tribunal the proceedings before it for execution of the
decree obtained against the Bank by the appellant, and subsequ-
ently the order of attachment passed by the Bombay High Court
was set aside by the High Court of Punjab on the ground that (i)
the provisions of the Banking Companies Act as amended in 1953
had an overriding effect, and that exclusive jurisdiction was vested
in the Punjab High Court notwithstanding anythin~ in the Dis-
placed Persons (Debts Adjustment) Act, 1951 and (ii) there was a
valid order of transfer to the Punjab High Court, of the execution
proceedings taken by the appellant in respect of his decree. '.l'b11 ap-
pellanh appealed to the Supreme Court.
Held, ths.t (i) in view of the wide and comprehensive l&ngu11ge
of as. 45-A and 45-B of the Banking Companies Act, 1949, as
1956
•
May9
1956
Shri Ram N attain
v.
The Simla Bank·
ing and Industrial
Co. Limited.
604
SUPREME COURT REPORTS
[1956]
amended in 1953, the proceeding to execute the decree obtained by
the appellant from the Tribunal against the Bank and all other inci-
dental matters arising therefrom are within the exclusive jurisdic·
tion of the Punjab High Court;
(ii) whatever may be the inter se position between the provi-
sions of the Banking Companies Act and those of the Displaced
Persons (Debts Adjustment) Act in so far as such provisions relate
to displaced debtors, the jurisdiction clearly and definitely vested
in the High Court by the very specific and comprehensive wording
of s. 45-B of the Banking il'.Jompanies Act cannot be said to be
overridden or displaced by anything in the Displaced Persons (Debts
Adjustment) Act, in so far as they relate to displaced creditors;
{iii) the Tribunal which is to exercise the jurisdiction for
executing the decree in question is a.
11court" within the meaning of
a. 45-C of the Banking Companies 'Act, whatever may be its status
when it passed the decree as a Tribunal;
(iv) having regard to the scheme and policy of ss. 45-B and
45-C of the Banking Companies Act, in respect of pending· matters
which have not been brought to the notice of the Court by the
Liquidator within three months, there is nothing to prevent the
Court exercising its power of transfer at suoh time when it is brought
to the notice of the Court.
CIVIL APPELLATE JURISDICTION:
Civil Appeal
No. 313of1955.
Appeal by special leave from the judgment and
order dated the 12th May 1955 of the Punjab High
Court at Chandigarh in Liquidation Miscellaneous
No. 72 of 1954.
J. B. Dadachanji and Rameshwar Nath, for the
appellant.
M .. G. Setalvad, Attorney-GeneraExcerpt shown. Read the full judgment & AI analysis in Lexace.