JWALA PRASAD Vs. JWALA BANK LTD

JUDGEMENT

(1.) THE Special Appeal No. 132 of 1956 came on for hearing before the Division Bench consisting of Agarwala and Upadhya JJ., The Court delivered the following differing judgments :

(2.) THE Jwala Bank was originally a private bank. It was converted into a limited concern in the year 1938. At the time of conversion an agreement was entered into between the Jwala Bank Limited and Sri Jwala Prasad appellant whereby it was agreed that Jwala Prasad shall be the Chairman of the Board of Directors of the Jwala Bank Limited, for twenty years certain with a salary of Rs. 2000/ - per month, a free furnished house and certain travelling allowances.

(3.) AS regards the past salary the case for the official liquidators is that Jwala Prasad had given up his claim for this amount. This plea is fully borne out from the material on the record. The learned Company Judge has pointed out that in the Balance -sheets of 1946, 1947 and 1949 there are statements on behalf of the Board of Directors signed by Sri Jwala Prasad as Chairman to the effect that the salary due to Sri Jwala Prasad has been foregone by him and that the total amount comes to Rs. 1,92,000/ -.