BANK OF CALCUTTA LTD Vs. DHIRENDRA NATH ROY

JUDGEMENT

(1.) On 17-7-1933 there was a mortgage of various valuable immovable properties, by the defendant in favour of Jessore Loan Company Ltd. In 1938 Jessore Loan Company Ltd. instituted this suit to enforce the mortgage. On 4-2-1946 the Jessore Loan Company Ltd. was amalgamated with the Bank of Calcutta Ltd. The Bank of Calcutta Ltd. became entitled to all the assets of Jessore Loan Company Ltd. and was substituted in its place as the plaintiff in this suit. On 15-11-1946 by consent of all parties preliminary mortgage decree for sale was passed in the suit.

(2.) The Bank of Calcutta fell into difficulties and on 26-11-1946 there was an interim order granting moratorium upon the undertaking of the Directors of the Bank not to pay more than 25 per cent. to the creditors. This undertaking was modified from time to time. On 8-12-1946 the Directors were given liberty to pay in full the deposits made after 26-11-1946. On 17-3-1947 the Directors were given liberty to pay up to 60 per cent, of the claim of the. creditors and the period of moratorium was also extended for another three months. On 26-8-1947 the application for moratorium was dismissed, and on the same day a winding up petition was admitted and the Official Liquidator was appointed the provisional Liquidator. On 1-9-1947 an application for scheme of arrangement was presented. On 19-11-1947 the scheme was sanctioned and the application for winding up was also dismissed.

(3.) The scheme did not function well, and the Bank again fell into difficulties. On 14-2-1949 a second application for winding up was presented, and on 1-4-1949 an order for compulsory winding up of the Bank was made and the Official Receiver was appointed the Official Liquidator.