RAGHUNATH PRUSTY Vs. ORISSA BANK LTD

JUDGEMENT

(1.) The defendant No. 1 is the petitioner in this Civil Revn. directed against an order of the Addl. Subordinate Judge, Cuttack, in mortgage suit No. 53 of 1953, who, --on a consideration of the preliminary issues raised by the defendants in the said suit as to maintainability and jurisdiction of the trial court to entertain the said suit, in view ot certain provisions of the Banking Companies Act, 1949, --held that this suit was maintainable in his court and that the said Court had jurisdiction to entertain and try the same.

(2.) The plaintiff in the suit is Orissa Bank Ltd. The suit was filed by the plaintiff through its Official Liquidator as Liquidator of the Bank "In Members Voluntary Liquidation". The relevant facts shortly stated are these: In 1933 the plaintiff was registered as a company under the Indian Companies Act, 1913. The name of the Company, Orissa Bank Ltd., was registered as stated in the Memorandum and Articles of Association as appears from a copy thereof amended up to 25-3 1944 filed in this Court in course of the hearing of the application. The objects for which the company was established were, inter alia, to carry on business as Bankers and to advance money on interest, and to carry on and engage in any or more of the forms of business and other objects as stated in the Memorandum of Association. The Company was carrying on such business until it was voluntarily wound up as hereinafter mentioned. In the meantime, the Banking Companies Act, 1949, (Act X of 1949) came into force with effect from March 16, 1949. On June 25, 1952 by a resolution passed in an Extraordinary General Meeting of the shareholders of the Company held on that day, a resolution was passed that the said Company be voluntarily liquidated under the members' voluntary winding up scheme under Section 207 of the Indian Companies Act, 1913. It appears from the minutes of the proceedings of the said meeting --a certified copy of which was filed in Court during the hearing ot this application -- that the shareholders, after examining the present financial position of the Company, considered that the liability can be met from the assets, if only the Company be voluntarily liquidated: and accordingly the said resolution for voluntary liquidation was passed. On that day there was a further resolution that the copies of the resolution passed in the said meeting including the one for voluntary liquidation be forwarded to the Registrar, Joint Stock Companies and Reserve Bank. On August 29, 1953, the present suit was filed by the Company against the defendant-petitioner and another for recovery of dues on a mortgage bond, being the said Mortgage Suit No. 53 of 1953. During the pendency of the suit the original Part III-A of the Banking Companies Act -- being "Special Provisions for Speedy Disposal of Winding up proceedings" --was amended and a new Part III-A was substituted by the Banking Companies (Amendment) Act, 52 of 1953, which came into force on 30-12-1953. Part III-A of the Act contains Sections 45-A to 45-X.

(3.) The defendants in their written statement, among other pleas, raised the defence that having regard to the provisions of Banking Companies Act, the Court of Subordinate Judge had no jurisdiction to try the suit and that the suit was not maintainable there. The said points were tried as preliminary issues and decided in favour of the plaintiff. Hence this revision.