- (1.) Heard Shri Subodh Kumar learned Counsel for petitioner-Union of India and Shri Muneesh Mehrotra for respondent Umesh Tandon S/o Late Shri Rajendra Tandon, R/o 7/110-C, Swaroop Nagar, Kanpur, UP.
(2.) The Union of India, through Secretary, Ministry of Finance, New Delhi has initialed these proceedings under Sections 45, 45M(2), 45L(4) of the Banking Regulation Act, 1949 read with Section 543(1) of Companies Act, 1956 for recovery of Rs. 228.36 lakhs along with interest from the respondent-Umesh Tandon, the Ex-Director of the Kashinath Seth Banki amalgamated with State Bank of India w.e.f. 1.1.1996) for negligence, misfeasance and breach of trust causing mismanagement and losses to the bank leading to its winding up and amalgamation with State Bank of India, under a scheme prepared by the Reserve Bank of India.
(3.) Two years before the amalgamation, a moratorium was declared. The competent authority was directed to scrutinize the affairs of the Bank, It was found that me Bank had suffered losses on account of several acts of misappropriation and misfeasance by the Directors of the Bank to the extent of Rs. 35.18 crores, as o 31.3.1995 leading to filing of this Company Petition. The matter is connected with 16 other company Petition with regard to misfeasance by the Ex-Directors for vaious periods beginning from 1984 to December 1994.;