H NAIK O L PURI BANK LTD Vs. JITENDRANATH DAS
HIGH COURT OF ORISSA
H.NAIK, O.L.PURI BANK LTD.
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Narasimham, J. -
(1.) This is an execution petition filed by the official liquidator of Purl Bank Ltd. (which is Banking Company) against one Sri Jitendranath Das against whom an ex parte decree was obtained by the liquidator on 17-1-1951 in M. S. No. 25 of 1951. When the notice under Order 21, Rule 22, C.P.C. was served on the judgment- debtor the latter filed two petitions stating that he had already filed a petition before the District Judge of Mayurbhanj for being adjudged an insolvent and requesting this Court to grant him permission under Section 171, Companies Act, read with Section 2, Banking Companies Act, 1949, to proceed with the said insolvency petition at Baripada. On behalf of the liquidator, however, an objection was taken to the filing of such an insolvency petition by the judgment-debtor and it was urged that under Section 45A, Banking Companies Act, 1949, as amended by the amending Act of 1950 (Act 20 of 1950) this Court alone had jurisdiction to entertain the insolvency petition of the judgment-debtor.
(2.) The sole question for decision now is whether a 'Banking Company' under liquidation is a decree-holder, its judgment-debtor is entitled to prosecute his petition for insolvency before a District Court with the permission of this Court or else whether this Court alone has jurisdiction to entertain such a petition.
(3.) The relevant sections for this purpose are Sections 45A and 45B, Banking Companies Act, as amended in 1950. They are as follows:
"Part IIIA Special provisions for speedy disposal of winding up proceedings. 45A. Court defined:-- In this Part and in Part III, 'Court means the High Court exercising jurisdiction in the place where the registered office of the banking company which is being wound up is situated or in the case of a banking company incorporated outside India which is being wound up, where its principal place of business is situated, and notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 (7 of 1913), or in any notification, order or direction issued thereunder or in any other law for the time being in force, no other Court "shall have jurisdiction to entertain any matter relating to or arising out of the winding up of a banking company.
45B. Power of Court to decide all claims by or against banking companies: 1. Notwithstanding anything to the contrary contained in the Indian Companies Act, 1913 (7 of 1913), or in any other law for the time being in force, the Court shall have full power to decide all claims made by or against any banking company including claims by or against any of its branches in India) and all questions of priorities and all other questions whatsoever, whether of law or fact, which may relate to or arise in the course of the winding up of the banking company coming within the cognizance of the Court". This Court is undoubtedly the Court as defined in Section 45A of the Act mentioned above. That section says that no other Court shall have jurisdiction 'to entertain any matter relating to or arising out of the winding up of a banking company'. The Puri Bank Ltd. is now being wound up and the question is whether the petition for being adjudged an insolvent filed by a judgment-debtor of the banking company is a matter 'relating to or arising out of' the winding up of the company. It was rightly conceded by the learned Counsel for the liquidator that such a petition under the Insolvency Act will not be a matter 'arising out of the winding up proceedings. But he urged that it will be a matter 'relating to' the winding up proceedings inasmuch as the expression "relating to" is wider than the expression 'arising out of'.;
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