P D SHAMDASANI Vs. TATA INDUSTRIAL BANK LTD

JUDGEMENT

(1.) We are here concerned with two items in two bills of costs, one of Messrs. Payne & Co., and the other of Messrs. Little & Co. Each of these items is for "Instructions for Brief at the trial." This arises under a judgment of Mr. Justice Pratt passed in the suit on December 14, 1923, when he dismissed the suit with costs and ordered that separate sets of costs as between defendant 1, the Tata Industrial Bank, and defendant 6, the Central Bank of India, Limited, be paid by the plaintiffs. Messrs. Little & Co. are the solicitors for the Tata Bank and Messrs- Payne & Co. for the Central Bank.

(2.) The suit itself was one brought in effect to set aside an agreement between the two companies by which the Central Bank acquired the shares of the Tata. Bank on the basis that one share in the Central Bank of Rs. 50 nominal and Secs.25 paid-up was to be given for every two Tata shares of Rs. 75 nominal and Rs. 22-8-0 paid-up. The plaintiffs contended that the resolutions approving of this sale were not properly passed and were invalid, as was also the resolution putting the vendor company into liquidation. They further alleged fraud on the part of the directors of the Tata. Bank, and amongst, other things they claimed in para. 7 of the plaint they there was a balance of about Rs. 50 lacs unaccounted for ; that there was a fraudulent concealment of the real facts ; and that if the valuation of the assets of both the banks were made on the same ba3is, it would be found that the intrinsic value of the shares of the Central Bank was much less than what it was represented to be. Further, by amendments of the plaint in paras. 7A and 7B, further allegations of fraud were made based on the assets of the two banks.

(3.) It is here material to state shortly the dates. The meeting at which this agreement was confirmed was on July 19, 1923, and the confirmatory meeting was on August 6, 1923. On August 13, the plaintiffs first wrote a letter by their solicitors disputing the resolutions and the agreement. On or before August 18 the agreement was in effect adopted and acted on by the liquidators of the Tata Bank. Then, on August 29, the plaint was declared and presented. It appears that the defendant banks at once raised an objection, with the result that the plaint was amended and re-declared on August 31, on which date it was formally admitted. On September 6, a notice of motion for an interim injunction and a receiver of the assets of the bank was served on the defendants. That motion came before Mr. Justice Pratt on September 11, when he directed the suit to be expedited and heard on October 3. The written statements were put in on September 21 and 22.