Sunil Ambwani, J. - (1.) HEARD Shri Subodh Kumar learned Counsel for petitioner -Union of India and Shri Arun Kumar for respondent - P.K. Pandey son of Shri Manager Pandey.
(2.) THE proceedings have been initiated under Section 45(11)(2) of the Banking Regulation Act, 1949 read with Section 543 of Companies Act, 1956 for recovery of Rs. 167.81 lakhs along with interest from the respondent -P.K. Pandey, the Ex -Director of the Kashinath Seth Bank (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 amalgamated with the State Bank of India, under a scheme prepared by Reserve Bank of India. A resolution thereof w.e.f. 1.1.1996, with which the Kashinath Seth Bank Limited stood wound up. Two years prior to this date, a moratorium was declared and the competent authority was directed to scrutinize the matter. It was found that the Bank had suffered losses on account of several acts of misappropriation and misfeasance by the Board of Directors of the Bank leading to filing of this Company Petition. The matter is connected with 16 other Company Petitions with regard to misfeasance by the Ex -Directors for various periods beginning from 1984 to December 1994.
(3.) SHRI Subodh Kumar, learned Counsel for Union of India states that respondent -P.K. Pandey was Director, of the Bank from 10.2.1992 to 13.3.1994. He along with members of Board of Directors is jointly and severally liable to the loss of Rs. 167.80 lacs caused to the Government of India and or/to the Slate Bank of India due to negligence and misfeasance of the respondent, which the respondent must pay to the bank as damages along with interest @ 18% per annum.;