Braund, J. - (1.) We are to decide an important preliminary issue bearing on a misfeasance application under Section 235 of the Indian Companies Act, 1913, in the matter of the Benares Bank Ltd., in liquidation. For this purpose, it is enough to say that the official liquidators have launched misfeasance proceedings under the section against a number of directors and officers, and former directors and officers of the bank in respect of transactions which took place some years before the liquidation began, and it is material to the disposal of a number of these charges to enquire what period of limitation applies. The winding-up petition was filed on August 3, 1939. A provisional liquidator was appointed on February 14, 1940, and the compulsory winding-up order, under which the official liquidators were appointed, was made on March 1, 1940. This misfeasance application was filed on February 12, 1943. It was, therefore, within three years from the date of the appointment of both the provisional liquidator and the official liquidators.
(2.) Section 235 (1) of the Indian Companies Act, 1913 (as now amended), is the section under which the official liquidators moved. It runs:- "235(1) Where, in the course of winding up a company, it appears that any person who has taken part in the formation or promotion of the company, or any past or present director, manager or liquidator, or any officer of the company has misapplied or retained or become liable or accountable for any money or property of the company, or been guilty of any misfeasance or breach of trust, in relation to the company, the Court may, on the application of the liquidator, or of any creditor or contributory made within three years from the date of the first appointment of a liquidator in the winding-up or of the misapplication, retainer, misfeasance or breach of trust, as the case may be, whichever is longer, examine into the conduct of the promoter, director, manager, liquidator or officer, and compel him to repay or restore the money or property or any part thereof respectively with interest at such rate as the Court thinks just, or to contribute such sum to the assets of the company by way of compensation in respect of the misapplication, retainer, misfeasance or breach of trust as the Court thinks just."
(3.) The words in italics are those which were introduced by the Amending Act of 1936. Having brought these proceedings therefore, within three years from the date of the appointment of the provisional liquidator, they were clearly within the actual terms of the section as amended.;