CHOTANAGPUR BANKING Vs. STATE

JUDGEMENT

(1.) A claim decree was obtained against Raja Kali Prasad Singh of Jharia under Section 14 of the Bihar Land Reforms Act for a sum of Rs. 75,518.24. The Additional Collector, Dhanbad, intimated the bank by his letter dated August 26, 1964, that the aforesaid amount had been deducted out of the compensation money payable to the ex-Raja and that the same was payable in bonds. A letter was written by the official liquidator to the Additional Collector, Dhanbad, explaining the present position of the bank and requesting that payment be made in cash or by cheque instead of bond. The Additional Collector expressed his inability to do so. Thereafter a report dated March 3, 1970, was filed in court by the official liquidator seeking direction if the payments be accepted in bonds. By order No. 337(1) dated August 14, 1970, the official liquidator was directed to take appropriate steps to get whole of the amount payable to the bank from out of the compensation money payable to the Raja of Jharia in one lump sum. Accordingly a letter dated October 27, 1970, was addressed to the Additional Collector, Dhanbad, requesting him to pay the compensation money in cash. A copy of the same was forwarded to the Secretary, Revenue Department, Government of Bihar. By letter dated May 6, 1971, the Revenue Department, Government of Bihar, has intimated that under the provisions of the Bihar Land Reforms Act, payment of compensation cannot be made beyond Rs. 50 in cash. The official liquidator in his report, which is at flag ' 1018 ' has made a request that necessary directions may be issued to the Government of Bihar to pay the entire amount of compensation in one lump sum in cash. Notice was issued to the State of Bihar in this case and I have heard the official liquidator and the learned Government Advocate on this question.

(2.) THE contention of the official liquidator is that under Sections 45A and 45B of the Banking Companies Act, 1949, the court has power to direct payment of compensation in cash although the relevant provisions in the Bihar Land Reforms Act read with Rules permit payments only in bonds or the payment of substantial amount in bonds only. Reliance in this connection has been placed on the decision of H. Naik, Official Liquidator, Puri Bank Ltd. v. Kanhu Charan Das, [1954] 24 Comp. Cas. 392 ; A.I.R. 1954 Orissa 186. and on the case of Thangia alias Thangavelu Onthiriyan v. Hanuman Bank Ltd., [1958] 28 Comp. Cas. 270 ; A.T.R 1958 Mad. 403 .

(3.) SECTION 45B is in the following terms :