Decided on July 08,1960

Hindusthan Co -operative Insurance Society Ltd. Appellant
STATE Respondents


U.C.Law, J. - (1.) The hearing of this application under Sections 397, 398, 399 and 402 of the Companies Act, 1956 has taken considerable time and the arguments were only concluded on 14th June, 1960, when I reserved my judgment; but I directed the matter to appear on the list on 16th June, 1960, marked "To be mentioned" as I wanted certain information regarding the cash balance in the current banking accounts of the company. It may be mentioned here that prior to this the respondants had given an undertaking to Court (which still subsists) not to withdraw or deal with the compensation money amounting to over Rs. 35,00,000/- and the accrued interest thereon lying invested in short deposit accounts in different banks in the company's account. On 16th June 1960 Mr. R.C. Deb appearing on behalf of P.N. Talukdar informed me that the amount lying in current accounts of the company with several banks amounted to over Rs. 1,67,000/-. Besides, there was also some cash in hand. This undoubtedly is a considerable amount and inasmuch as I had, by then made up my mind as to thd order I was going to pass in this application, except that I had not finally decided as to the form the order should take, I asked Mr. Deb whether the respondents were prepared to give an undertaking not to withdraw the amount lying in the current accounts of the company pending my judgment. Mr. Deb, however, was not inclined to do so when it was submitted on behalf of the applicants that I should, in the circumstances, issue an injunction restraining the respondents from withdrawing any money from the current accounts of the company with different banks. Having regard to the fact that I had already by then come to a conclusion, I thought it proper that no money belonging to the company should any longer be left under the control of the respondents and accordingly I issued an interim injunction restraining, the respondents from withdrawing or dealing with the moneys of the company lying in its current accounts in different banks.
(2.) Now I proceed to deal with this application,
(3.) Hindusthan Co-operative Insurance Society Ltd., (hereinafter referred to as the company) is a public company incorporated under the Companies Act and has its registered office fit No. 4, Chittaranjan Avenue Calcutta. The authorised capital of the company is Rs. 1,00,00,000/-divided into 100,000 shares of Rs. 100/- each. From the Balance-sheet of the company for the year ending 31st December 1954, it appears that the issued and subscribed capital of the company was Re. 28,69,500/- divided into 28,695 shares of Rs. 100/- each of which Rs. 25/- was called up per share.;

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