Subba Rao J. -
(1.) This is an appeal against the Judgment of RAMASWAMI GOUNDER J. winding up the General Bank Ltd., and appointing two joint official liquidators. The General Bank Ltd., Madras, was registered on 12th November, 1935, as a private limited company under the Indian Companies Act. The share capital is ten lakhs divided into A class shares of 9,000 at Rs. 100 each. The called and paid up capital of the said bank is Rs. 1,09,500. Out of total subscribed capital of Rs. 2,72,500 Narayana Ayyar and his sons and daughters owned shares of the value of Rs. 2,45,000. It is said that the holders of the remaining shares are also his close relatives or friends. It is therefore practically a family concern of Narayana Ayyar. From the inception of the Narayana Ayyar was the managing director till he died on 28th May, 1951. After his death, his second son Venkatasubramania Iyer had been functioning as the managing director. Prior to the death of Narayana Ayyar, two of his sons, P.N. Ramachandra Aiyar, the petitioner, and Easwara Iyer, filed two suits for partition of the family properties. Easwara Iyer instituted C.S. No. 367 of 1950 against his father and other members of the family. The petitioner filed O.S. No. 36 of 1950 in the Sub-Court, Calicut, for similar reliefs against his father and brothers. The said suit was transferred to this court to be tried along with C.S. No. 367 of 1950 and was renumbered as C.S. No. 474 of 1950. The suits are not yet disposed of, but a number of applications are filed therein for suitable orders to safeguard the interests of the parties till the disposal of the suits. Along with the plaint, C.S. No. 367 of 1950, Easwara Iyer filed an application No. 3354 of 1950 for the appointment of a receiver for the suit properties and other reliefs. A similar application was filed by the petitioner Ramachandra Aiyar in the transferred suit. Those applications were finally disposed of on 10th August, 1953, by a Division Bench of this court consisting of Satyanarayana Rao and Chandra Reddi JJ. The learned judges with certain modifications confirmed the order of Krishnaswami Naidu J. appointing receivers in respect of some of the properties comprised in the subject-matter of the suits. But in regard to the deposits in the bank in the name of Narayana Ayyar, though they found that prima facie the plaintiffs in the two suits would be entitled to shares in them by reason of their being heirs of Narayana Ayyar, they did not appoint a receiver in view of the fact that there was an order directing liquidation of the bank and that order was the subject-matter of an appeal. In disposing of the appeal, they made the following remarks in respect of the said deposits:
"If a liquidator were to be appointed, the liquidator will be in charge of the funds of the bank and will collect the outstanding. The matter of providing safeguards for the interests of the members in respect of the deposits standing in the name of the first defendant, in the bank must be dealt with by a separate order after the result of the liquidation proceedings is known. If a liquidator is appointed, there is no need to appoint a receiver. If however a liquidator is not appointed, the matter may be brought up again before this court for necessary directions for taking steps to collect the fixed deposit amounts, realising the assets of the bank and safeguarding the interests of the plaintiff and other defendants."
(2.) But pending the disposal of the main applications for appointment of a receiver various applications were taken for safeguarding the amounts representing the deposits which have matured. Ramachandra Aiyar filed application No. 3715 of 1951 in C.S. No. 474 of 1950 to appoint a commissioner for taking charge of and realising the sum of Rs. 2,89,000 in deposit in the name of Narayana Ayyar. To that application the General Bank Ltd. was not a party. At first Venkatasubramania Iyer agreed to give security but later on went back on his word. On 13th March, 1952, Panchapakesa Aiyar J. appointed Sri L.V. Krishnaswami Iyer, Advocate, as the commissioner for collecting the amounts standing to the credit of Narayana Aiyar and investing the same in the Imperial Bank of India. Krishnaswami Iyer wrote to the bank on 31st March, 1952, demanding payment of the monies alleged to be due to Narayana Ayyar. On 8th April, 1952, the bank replied to him stating that they would be able to pay the said amount if further time was given. On 9th April, 1952, he made another demand on the bank for payment of the amount standing in the name of Narayana Ayyar but he did not receive any reply. So too, the widow of Krishna Iyer, the youngest son of Narayana Ayyar, filed an application. No. 924 of 1952, against Venkatasubramania Iyer, the managing director, for directing him to deposit into court the sum of Rs. 84,000 deposited in the bank in her husband's name. To that application the bank was made a party. Panchapakesa Aiyar J. ordered that application on 13th March, 1952, directing the bank to pay the entire amount due to her on or before 10th April, 1952. Though this order had become final, the bank did not comply with it.
(3.) Meenakshi, the daughter of Narayana Ayyar, filed application No. 4781 of 1951 in respect of a trust amount of Rs. 30,000. Panchapakesa Aiyar J. made an order directing the bank to deposit the said amount in court by 13th March, 1952. The bank failed to comply with that order either.;