IN RE: PALAI CENTRAL BANK LTD. Vs. STATE

JUDGEMENT

(1.) BY these reports, made under Section 45G of the Banking Companies Act, the official liquidator asks for the public examination of ten persons - -I shall call them respondents - -the first nine of whom were directors (the first of them managing director) of the banking company that is being wound up, and the tenth its auditor. The 2nd respondent died soon after the filing of the first of these reports, and he is beyond the reach of human examination. Notice has gone to the remaining respondents and they have been heard as required by the proviso to sub -section (2) of the section. But, before considering the objections taken by them, I think it would be profitable to have a close look at the section and compare it with its parent section, now section 478 of the Companies Act, 1956.

(2.) SECTION 45 G of the Banking Companies Act - -so far as is material - -runs as follows.

(3.) THERE are other differences between the two provisions, but I do not think that they materially affect the scope of the inquiry. The more important of these differences are :