Baghawat, J. - (1.) This is appln. by Sm. Annapurna Badrinarain Banerji for an order directing the Official Liquidator of the Pioneer Bank to set off the debt due to Badrinarain from the Bank under six fixed deposit receipts against a debt due to the Bank from the appcts. No objection is taken to the form of the prayer or to the maintainability of the petn. & I have been expressly invited by Mr. T. Banerjee who appeared on behalf of the Bank to adjudicate on the question of set off on this appln.
(2.) It is common case that Annapurna borrowed large sums of money from the Bank on an overdraft account & is indebted to the Bank personally. Badrinarain is a guarantor The petn. contains conflicting statements with regard to the nature of the guarantee. Mr. Lahiri appearing on behalf of the appct. has however formally admitted & it is now common case that Badrinarain guaranteed personally the entire amount of the debt due from Annapurna & as further security for the debt endorsed a Life Insurance Policy & also made over six Fixed Deposit receipts. Badrinarain executed letters of lien authorising the Bank to adjust the amount of the Fixed Deposit receipts against the debt due from Annapurna & until such adjustment it was agreed that the Bank would have a lien on the Fixed Deposit receipts. Under the Fixed Deposit receipts large sums of money are due to Badrinarain from the Bank on account of deposits made by him. The last of the fixed deposit receipts is dated 20-5-1948. The petn, for winding up was presented on 3-1-1949 before which date all the fixed deposit receipts matured except one which matured on 20-5-1949. The bank was ordered to be wound up on 12-7-1949.
(3.) Certain interesting questions as to set-off arise in this case. The Co. is in winding up & is insolvent & therefore, by Section 229, Companies Act, the bankruptcy Jaw as to mutual dealings & set-off is imported into the scheme of the winding-up.;