Judgment

HIDAYATULLAH, J. : (Majority view: B. P. Sinha C. J., Hidayatullah and Mudholkar JJ.) On August 8, 1960, the Reserve Bank of India made an application in the High Court of Kerala under S. 38 of the Banking Companies Act, 1949 (10 of 1949) read with the Indian Companies Act, 1956 (1 of 1956), for the winding up of the Palai Central Bank, Ltd. (having its registered office at Palai in the State of Kerla), for the appointment of the Official Liquidator of the High Court as the Liquidator with all the powers under the said Acts and for appointment of the Official Liquidator as the Provisional Liquidator during the pendency of the application. This application was allowed on December 5, 1960, and the present appeal with special leave, has been filed against that order.

2. The Palai Central Bank, Ltd. (herein referred to as the Palai Bank or the Bank) was incorporated in January, 1927 under the Travancore Companies Regulations. Till 1936, it was known as The Central Bank, Ltd.", when the name was changed. In March 1937, the Palai Bank was included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1984). According to the balance sheet of the Palai Bank for the