MALLELA SURYANARAYANA Vs. VIJAYA COMMERCIAL BANK

JUDGEMENT

(1.) THESE appeals arise out of an order of our learned brother SATYANARAYANA RAJU, J. directing public examination of directors, past and present, of a banking company, called the "Vijaya Commercial Bank Limited" (now in liquidation), under section 45G of the Banking Companies Act (X of 1949) and a similar examination of the officers of the bank under section 196 of the Indian Companies Act, 1913.

(2.) THIS concern was started in December, 1944, under the provisions of the Indian Companies Act. By order, dated 19th January, 1954, the High Court of Judicature at Madras directed the liquidation of the bank at the instance of one of its creditors. Pursuant to the winding up order, an official liquidator was appointed on the same day. He submitted a preliminary report in January, 1954, and a further report on 28th September, 1956, stating that, in his opinion, loss was caused to the bank by reason of certain acts or omissions of the directors which were set out in his report. On the strength of the report and after considering the several objections raised on behalf of the directors and the officers concerned, the order under appeal was passed on 6th December, 1957.

(3.) ARTICLE 20(3) of the Constitution reads: