K.Sahai, J.

1. The question which arises for consideration in this case is whether this Court should order the winding up of a Bank named Chotanagpur Banking Association Ltd. (hereinafter to be referred to as the Bank) or direct that the scheme of composition put up by the Bank under Sec.391 of the Companies Act, 1956, be considered by the creditors and share-holders of the Bank at meetings to be held for the purpose.

2. The Bank filed an application in this Court on 6-1-1958, praying for an order of moratorium under Sec.37 of the Banking Companies Act (X of 1949), It was not accompanied with a report from the Reserve Bank as required by Sub-section (2) of the section. Acting under the proviso to that sub-section, however, I granted moratorium and called for a report from the Reserve Bank on the affairs of this Bank. By my order dated 14-1-1958, I appointed a Special Officer to take over charge of the assets of the Bank.

In accordance with my order, the Reserve "Bank submitted a report dated the 14th March, stating that there was no reasonable chance of the Bank paying its debts within the period of six months beyond which the order of moratorium could not last. On the 17th