PUNJAB COMMERCE BANK LTD Vs. RAM NARAIN VIRMANI

JUDGEMENT

(1.) THE terminus a quo for the period of limitation prescribed for presenting an application under Section 235 of the Indian Companies Act, 1913, has been the primary subject of debate in this case. The issue arises in the following circumstances.

(2.) THE official liquidator of the Punjab Commerce Bank Ltd. has moved this application under Section 235 read with Section 244b of the Indian Companies Act, 1913, praying that the conduct of the respondent, Shri Ram Narain Virmani, be examined and he be held liable to pay a sum of Rs. 19,054 with interest, etc. , by way of compensation in respect of misapplication, retainer, misfeasance or breach of trust of the amount above-said.

(3.) ON October 11, 1950, the respondent, Shri R. N. Virmani, was appointed the liquidator of the Punjab Commerce Bank Ltd. by the order of the High Court. He held that office for nearly 17 years and resigned the same on November 3, 1967, when the present applicant was appointed in his place. Earlier, the respondent, on February 2, 1957, had made an application in the High Court seeking its sanction for preferential payments to small depositors in the savings bank account up to a sum of Rs. 100 in accordance with the provisions of Section 43a of the Banking Regulation Act, 1949. Chopra J. , by an order dated February 8, 1957, accorded the requisite sanction and it is the applicant's case that these payments were made to the small depositors from the years 1957 to 1966.