CANARA BANK LTD Vs. T P R THAMPI

JUDGEMENT

(1.) The point that arises for determination in this Civil Revision Petition is whether the notice issued to a member of a banking company by sending by post to his registered address or to the address which was supplied by him to the company for giving notice to him was not sufficient in the circumstances of the case. One deceased Thanu Pillai was a shareholder of the Bank of Kerala, Ltd which was subsequently amalgamated with the plaintiff Bank which was then the Canara Bank Ltd. Deceased Thanu Pillai paid the first call of Rs. 500/- at the rate of Rs. 50/- each for 10 shares and he was to pay the balance Rs. 500/- in respect of such 10 shares. The balance was not paid. So notices had been sent to him why the amount of the shares should not be forfeited. One such notice is marked Ex.P4 dated 8-7-1964 by which he was called upon to pay the call money on a specified date and on failure of payment he was informed that the share money which he had already paid would be liable to be forfeited. There was no reply. Again another notice was sent on 20-8-1964, ex. P5, forfeiting the share money which he had already paid. The suit was instituted for the balance amount of Rs. 500/- due to the plaintiff Bank at the rate of Rs. 50/- for 10 shares.

(2.) It is now admitted that Thanu Pillai died in December 1949. It is contended on behalf of the respondents, as the legal representatives for Thanu Pillai that the forfeiture notice was not valid and that they are not liable to pay any amount to the Bank. It is established that Exs. P4 and P5 notices had been sent in the address of Thanu Pillai, which was the address registered in the Bank's books as it was the address supplied by him to the Bank. If such a notice was sent, the forfeiture passed against Thanu Pillai is valid. S.53 of the Companies Act 1956, provides for sending notices of documents. Sub-s.(5) of S.43 reads as follows:

(3.) In the result, the revision petition is allowed and the suit is decreed as prayed for against the assets of deceased Thanu Pillai, if any, in the hands of the defendants. The plaintiff Bank is now a nationalised Bank. So the Canara Bank will be entitled to get the decree as prayed for.