- (1.) Heard Shri Subodh Kumar learned Counsel for petitioner-Union of India and Shri Ajeet Kumar for respondent Shri H.H. Saran Srivastava.
(2.) The proceedings have been initiated under Section 45(H)(2) of the Banking Regulation Act, 1949 read with Section 543 of Companies Act, 1956 for recovery of Rs. 7.23 lakhs along with interest from the respondent -H.H. Saran Srivastava, 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 w.e.f. 1.1.1996, with which the Kashinath Seth Bank Limited stood wound up.
(3.) Two years prior lo 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.;