JWALA PRASAD Vs. OFFICIAL LIQUIDATOR JWALA BANK LTD

JUDGEMENT

(1.) THESE are three special appeals arising out of the same case and can, therefore, be conveniently disposed of together. They arise Out of an application made by the official Liquidator of the Jwala Bank Ltd., (in liquidation) under section 235 of the Companies Act of 1913. The application was filed against seven persons, three of them being the present appellants. The seven persons were Sri Jwala Prasad, Sri G.G. Buty, Sri W.C.G. Dunne, Sri W.B. Dawson, Sri Rama Shanker, Father Francis Xavier and Messrs. S.N. Gupta and Co. Sri W.C.G. Dunne died during the pendency of the petition and the case abated against him. Sri W.B. Dawson was not traceable and the Liquidator, therefore, intimated to the Court that he was withdrawing the case against Sri W.B. Dawson and did not want to proceed against Mm. The application proceeded against the remaining five persons. Father Francis Xayier having been exonerated from liability decrees were passed against the remaining four persons. Sri Jwala Prasad was held liable for Rs.56,212/ - plus Rs.2,000/ - as costs.

(2.) SIX of the persons against whom the application had been filed were the directors of the Bank in liquidation while Sri S.N. Gupta of Messrs. S.N. Gupta and Co., was the duly appointed auditor of the Bank.

(3.) THE appeal was, however, dismissed on the 24th of October 1950, and the stay order was discharged. The liquidator then took charge of the affairs of the company. He got the affairs of the company investigated by a firm of chartered accountants known as Messrs. G.P. Jaiswal and Co. As a result of the report of the investigators and a scrutiny of the account books of the company and the balance sheets of the years 1945 -46 and 1946 -47 the Official Liquidator discovered: -