PUNJAB NATIONAL BANK Vs. MEHRA BROTHERS P LTD

JUDGEMENT

(1.) The present suit had been filed by the Punjab National Bank in the year 1960 against Mehra Brothers (Private) Ltd. (now in liquidation), Prem Pal Mehra, Master Nandalal and Raj Kumar Mehra. The claim by the plaintiff Bank against the defendant No. 1, Company was for recovery of a sum of Rs. 8887/- as a principal debtor and the claim against the defendant Nos. 2, 3 and 4 was that of a Guarantor in respect of the loan granted by the Plaintiff Bank to the Company. Such Guarantee was given by the defendant Nos. 2, 3 and 4 in their personal capacity for due repayment of the money, which the defendant No. 1 owed to the plaintiff bank. On 15th December, 1951 M/s. Mehra Brothers Private Ltd. was wound up and the Court Liquidator was appointed Official Liquidator to represent the said Company in liquidation. Leave was obtained on the 7th November, 1960 to proceed against the Company in liquidation and the other defendants for recovery of the Bank's dues.

(2.) Thereafter an application was made by the Plaintiff-Bank for leave to file its claim before the Official Liquidator and by an order dt. the 4th May, 1956 the Official Liquidator was directed to adjudicate upon the debt payable by the Company (in liquidation) to the Bank.

(3.) It appears that the claim to the extent of Rs. 8,887.09P had been admitted by the Official Liquidator in favour of the Plaintiff-bank and a sum of Rs. 444.35P had been paid to the Manager of the Plaintiff-bank towards the first dividend.