A C GOEL Vs. FIRST NATIONAL BANK LTD

JUDGEMENT

(1.) THIS is an application made by Shri A. C. Goel under S. 19 (2)of the Displaced Persons (Debts Adjustment) Act (Act No. LXX of 1951) for converting his 280 shares, on which 75 per cent had been paid up, into 210 fully paid up shares on the ground that the petitioner is a displaced person from West Punjab. The respondent is a banking Company which had its registered office at Lahore which, as a result of the creation of two Dominions, was shifted at first to Ambala and later on to Ludhiana in East Punjab. On 6th of February, 1957 the petitioner serviced a registered notice on the Managing Director of the respondent-Bank requesting that his 280 shares, on which 75 per cent had been paid, may be reduced and converted into 210 fully paid-up shares as he was a displaced person from Lahore. Exhibit P. W. 1/2 is the acknowledgment receipt of the notice. This case, which was filed before the Tribunal at Delhi, has been transferred to this Court by virtue of S. 45b of the Banking companies Act (Act No. X of 1949 ).

(2.) AN application had been made for the winding up of the Bank by North India Radhaswami educational Society on 10th of March, 1955. While the petition for the winding up of the Bank was pending, the Reserve Bank of India, had also applied for its winding up and the Bank was ordered to be wound up on 17th of May, 1957 at the instance of the Reserve Bank. The petition presented by the Society on 10th of March, 1955 was also allowed and order for the winding up was passed on 30th of August, 1957. The contention raised by the petitioner was traversed by the bank and the pleadings between the parties gave rise to the following issues:

(3.) ON the first issue reference may be made to the provisions of S. 19 (6) of the Displaced persons (Debts Adjustment) Act. It provides: