MOHAN LAL HUJA Vs. CHAWLA BANK, LTD

JUDGEMENT

(1.) This is an appeal by Mohan Lal Huja and some other creditors of the Chawla Bank, Ltd,, which will hereafter be referred to as the bank, against an order, dated 17 January 1949, made by a learned Judge of this Court, in exercise of the original company jurisdiction of the Court, under Rule 153, Companies Act (VII

(7.) of 1913).

(2.) The Chawla Bank, Ltd., was incorporated In British India as a joint stock company, under the Indian Companies Act, in the year 1932, with its registered office at Bannu in the North-West Frontier Province. At the time of its incorporation, the share capital of the bank was Rs, 2,00,000, divided into 4,000 shares of Rs. 50 each; but in 1945 the capital was raised to Rs. 10,00,000, divided into 20,000 shares of Rs. 50 each. The paid up capital amounted to Rs 3.59,400. In course of time the bank was a flourishing concern, and was able to establish thirteen branch and pay offices at various places in the North-West Frontier Province and in the Punjab. In the early part of 1947, in view of the communal disturbances, which preceded the partition of British India, into India and Pakistan, the bank opened a branch at Dehra Dun with the permission of the Reserve Bank of India.