TMI Blog1954 (12) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... AND AIYYAR, T.L. VENKATARAMA, JJ. JUDGMENT For the Appellant : H.J. Umrigar, Rameshwar Nath and Rajinder Narain For the Respondent : A.N. Sinha and P. C. Dutta JAGANNADHADAS J. This is an appeal, by leave of the High Court of Calcutta under article 133 (1) (c) For these two sections 45-B and 45-G (inserted by Act XX of 1950) two now sections 45-B and 45-U wore inserted by s. 10 of Act LII of 1953 of the Constitution, from its judgment in its appellate jurisdiction confirming that of a Single Judge of the Court. The point involved is a short one and arises on the following facts. The respondent before us, Associated Bank of Tripura Ltd., went into liquidation on the 19th December, 1949. A month prior to the liquidation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d land, in a summary proceeding initiated on an application but could pass the decree only on a suit regularly instituted.This contention was raised on the basis of a judgment of the Calcutta High Court given on the 24th August, 1950, that in respect of such a relief under section 45-B a summary proceeding is not maintainable but that a suit has to be filed. This decision has since been reported in Sree Bank v. Mukherjee([1950] 55 C.W.N. 400). The learned trial Judge before whom the present suit came up was of the opinion that though the ex parte decree for ejectment was obtained on a wrong proceeding, there was no inherent lack of jurisdiction in the Court and that the fact of the decree having been obtained in a wrong proceeding did not r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 45-B was only a suit and not an application, is correct. It is necessary for this purpose to notice the relevant sections. Section 45-A of the Banking Companies Act, 1949, as amended by Act XX of 1950 defines 'Court' for the purposes of Part III and Part III-A of the Act as "the High Court exercising jurisdiction in the place where the registered office of the Banking Company concerned, which is being wound up, is situated". The said section also provides that "notwithstanding anything to the contrary contained in the Indian Companies Act, 1913, or in any notification, order or direction issued thereunder or in any other law for the time being in force, no other court (i.e. a court other than the one as above defined) shall have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6) the liquidator has to invoke the help of the appropriate Court in the ordinary way. This as is wellknown leads to a great deal of inevitable delay and expense. When in 1949 special legislation in respect of Banking Companies was taken up, it was one of the stated objects, to provide a machinery by which proceedings in liquidation of Banking Companies could be expedited and speedily terminated. It was found, however, that the Act of 1949, as originally enacted, was inadequate to achieve that purpose. It is in this situation that the Amending Act of 1950 introduced into the Act of 1949 an entire Chapter, Part III-A, consisting of sections 45-A to 45-H under the heading "Special provisions for speedy disposal of winding up proceedings". It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company by a summary proceeding such as an application to the Company Judge" and therefore held that no application for recovery would lie and that only a suit should have been brought for which the period of limitation was the ordinary period provided in the Limitation Act. It appears to us, with great respect to the learned Judges, that this approach as to the nature of the proceeding required or permitted under section 45-B of the Banking Companies Act was not correct. The question is not whether section 45-B permitted summary proceedings but the question is whether the section prescribed definitely a particular method of proceeding and whether consistently with the policy of the Act it was not to be presumed that a speedy and cheap rem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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