Bhargava, J. - (1.) This is an appeal by Mohan Lal Huja and some other creditors of the Chawla Bank, Ltd., which will hereafter be referred to as the bank, against an order, dated 17th January, 1949, made by a learned Judge of this Court, in exercise of the, original company jurisdiction of the Court, under Section 153 of the Companies Act (VII of 1913).
(2.) The Chawla Bank Ltd., was incorporated in British India as a joint stock company, under the Indian Companies Act in the year 1932, with its registered office at Bannu in the North-West Frontier Province. At the time of its incorporation, the share capital of the bank was Rs. 2,00,000, divided into 4,000 shares of Rs. 50 each; but in 1945 the capital was raised to Rs. 10,00,000, divided into 20,000 shares of Rs. 50 each. The paid up capital amounted to Rs. 3,59,400. In course of time the bank was a nourishing concern, and was able to establish thirteen branch and pay offices at various places in the North West Frontier Province and in the Punjab. In the early part of 1947, in view of the communal disturbances, which preceded the partition of British India into India and Pakistan, the bank opened a branch at Dehra Dun with the permission of the Reserve Bank of India.
(3.) As a result of the partition the North-West Frontier Province and the western portion of the Punjab, which formed part of British India, became part of Pakistan. After 15th August, 1947, the bank became a company registered under the Indian Companies Act in its application to Pakistan, read with the India (Adaptation of Existing Indian Laws) Order, 1947. Thereafter, the bank was registered in India, under Section 277 of the Act in, its application to India, as one of the companies established outside British India.;