P K NEDUNGADI Vs. MALAYALEE BANK LTD

JUDGEMENT

(1.) This is an appeal by certificate from a judgment of the Madras High Court.

(2.) In October, 1950 the Malayalee Bank Ltd., hereinafter called the "Bank" was ordered to be wound up. On that date there were only two Directors i.e., respondent No. 3 and the appellant P. K. Nedungadi. The second respondent P. S. Mannadiar hereinafter called "M" was appointed as the Managing Director on March 4, 1945. He continued to work as such till December 25, 1948. Afterwards he was a Director till the date of his resignation on June 14, 1950. The third respondent T. Eronanunni was Director from November 15, 1943 onwards. The fourth respondent V. K. Thirumalpad was a Director from 1940 till March 13, 1949. The appellant P. K. Nedungadi was a Director from October 8, 1948 till the date of the winding up order. The fifth respondent V. Venugopalan Thampan was a Director from June 22, 1946 till October 8, 1948.

(3.) In September, 1953 the Official Liquidator filed a petition under Sections 183 (3) and 235 of the Indian Companies Act together with Rule 9 of the Companies Rules and Sec. 45, A, B. and F of Act IX of 1950 and Rule 6 of the Banking Companies Rules for an order determining and fixing the liability of the respondents jointly and severally in respect of the acts of misfeasance, misapplication of monies, breach of trust etc., and to declare their liability to contribute Rs. 2,11,998.04 or such other sum as might be determined. In September, 1954 the High Court directed the Official Referee to record the evidence. Two charges were framed out of which so far as the appellant is concerned, the material portion of the following charge may be reproduced: