RAMA SHANKAR Vs. OFFICIAL LIQUIDATOR JWALA BANK LTD

JUDGEMENT

(1.) THIS is a special appeal arising in proceedings under Section 235, Companies Act. The Jwala bank Ltd. , went into liquidation by an order dated 17-2-1950 upon an application for winding up made on 1-8-1949. An appeal was filed against the order of winding up and the winding up proceedings were stayed pending the appeal. The appeal was, however, dismissed on 24-10-1950. The Official Liquidator filed a Petition under Section 235, Companies Act, against seven persons including the appellant who was one of the Directors of the Bank.

(2.) THE Official Liquidator's case was that the Directors, Manager and Auditors of the Bank were guilty of various acts of misfeasance which caused to the Company a loss of over four and a half lacs of rupees. He prayed that a decree for this amount be passed against the opposite parties including the appellant severally or jointly.

(3.) THE appellant and the, other opposite parties denied the allegations made against them and further pleaded that the application was barred by limitation. On their prayer that the plea of limitation may be decided first, the learned Company Judge proceeded to decide it and came to the conclusion that the Official Liquidator's application was within time. Against this order of the learned Company Judge, this special appeal has been instituted and a preliminary objection has been raised by the learned counsel for the Official Liquidator that the appeal does not lie.