HORWILL, BALAKRISHNA AYYAR
M. A. Malik – Appellant
Versus
V. S. Thiruvengadaswami Mudaliar – Respondent
Horwill, J.-In misfeasance proceedings taken by the liquidator during the course of a winding up of a company of which the appellant was a Director for a year or so, this Court on the Original Side directed that the appellant do pay the Official Liquidator the sum of Rs. 2,991-14-0 and Rs. 4,866-6-0
“being the amounts of loss occasioned in respect of the share brokerage, preliminary expenses and investments in unauthorised banks respectively . . . .”
The respondent having taken an assignment of the decree proceeded against the appellant in execution and applied to the Court for his arrest. The question arose whether under section 51, Civil Procedure Code, the respondent was liable for arrest. He pleaded that he was a pauper and was quite unable to raise the money to discharge the decree. The Court however found that since he was a Director and it was on account of his breach of duty that the loss had been sustained by the company, clause (c) of the proviso to section 51 applied, and
“that the decree is for a sum for which the judgment-debtor was bound in a fiduciary capacity to account.”
It is not contended by the respondent that a Director is an express trustee of the property
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