NEW MODEL BANK LTD Vs. P A THOMAS

JUDGEMENT

(1.) On 4-11-1957 the defendant obtained a decree for money, charged on the property now in suit, against the plaintiff banking company. This was in O. S. No. 384 of 1957 on the file of the Munsiffs Court, Alleppey. On 15-11-1957 the plaintiff company was ordered to be wound up by this court. On 13-12-1957 nearly a month later, the defendant applied to the Munsiffs Court Alleppey for execution of the decree he had obtained and, in pursuance thereof, the property was brought to sale and bought by the defendant himself on 3-3-1958. All this he did without obtaining the leave of court required by S.446 of the Companies Act, 1956 and, in due course, on 16-7-1958 he obtained delivery of the property he had brought. On 26-2-1959, the plaintiff bank came forward with the present suit asking for a declaration of its title to the property and for possession with mesne profits, past and future. In doing so it averred that the execution proceedings and the defendants purchase therein were completely void and gave no title whatsoever to the defendant because

(2.) The defendants contention is that since the liquidator had not moved this court and had the proceedings transferred to it under S.45 C of the Banking Companies Act the Munsiffs Court, Alleppey continued to have jurisdiction. That being so, S.446 of the Companies Act does not apply. Further, that the suit property was trust property in the hands of the liquidator, and the defendant being, to the best of his knowledge, the sole beneficiary, the execution proceedings were valid.

(3.) The following issues were framed: