MADRAS HIGH COURT
RAMASWAMI
Thangia alias Thangavelu Onthiriyan
Versus
The Hanuman Bank Ltd. (in Liquidation), represented by Official Liquidators, Brahmayya and Co.
Second Appeals Nos. 425 to 454 of 1955
Decided On : 20 November, 1957
BANKING COMPANIES ACT - WINDING UP - JURISDICTION - SUITS FOR ISSUE OF PATTAS UNDER MADRAS ESTATES LAND ACT - WHETHER DEPUTY COLLECTOR HAS JURISDICTION TO DISPOSE OF SUCH SUITS - PROVISIONS OF SS. 45-A, 45-B AND 45-C OF THE BANKING COMPANIES ACT, 1949, READ WITH SEC. 11 OF THAT AMENDING ACT, CONSIDERED.
Fact of the Case:
The plaintiffs in these suits alleging themselves to be occupancy ryots filed the suits under Sec. 55 of the Madras Estates Land Act for issue of pattas. The Hanuman Bank Ltd., (in liquidation) represented by Official Liquidators, Brahmayya and Co. is the defendant in each of these suits. The liquidation ordered by this High Court is in progress. Both the Courts below held that the Deputy Collector, Kumbakonam, could not dispose of the suits by virtue of the provisions of Ss. 45-A, 45-B and 45-C of the amended Banking Companies Act, 1949, read with Sec. 11 of that Amending Act, that came into force on 18-3-1950. These suits were filed on or after 5-5-1951.
Finding of the Court:
The High Court held that the Deputy Collector, Kumbakonam, could not dispose of the suits by virtue of the provisions of Ss. 45-A, 45-B and 45-C of the amended Banking Companies Act, 1949, read with Sec. 11 of that Amending Act, that came into force on 18-3-1950. These suits were filed on or after 5-5-1951.
Issues: Whether the Deputy Collector has jurisdiction to dispose of the suits for issue of pattas under the Madras Estates Land Act, in view of the provisions of Ss. 45-A, 45-B and 45-C of the Banking Companies Act, 1949, read with Sec. 11 of that Amending Act?
Ratio Decidendi: The High Court held that the provisions of Ss. 45-A, 45-B and 45-C of the Banking Companies Act, 1949, read with Sec. 11 of that Amending Act, confer exclusive jurisdiction on the High Court to entertain and decide all claims made by or against a banking company which is being wound up, including claims by or against any of its branches in India, and any question of priorities or any other question whatsoever, whether of law or fact, which may relate to or arise in the course of the winding up of a banking company. This jurisdiction is exclusive and overrides the jurisdiction of any other court, including the Deputy Collector, Kumbakonam.
Final Decision: The High Court held that the Deputy Collector, Kumbakonam, did not have jurisdiction to dispose of the suits for issue of pattas under the Madras Estates Land Act, in view of the provisions of Ss. 45-A, 45-B and 45-C of the Banking Companies Act, 1949, read with Sec. 11 of that Amending Act.
JUDGMENT : These are a batch of second appeals preferred against the decrees and judgment of the learned District Judge of West Tanjore in A. S. Nos. 73 to 102 of 1954, confirming the decrees and judgment of the learned Deputy Collector, Kumbakonam, in S. S. Nos. 1 to 4, 6 to 27 and 29 to 32 of 1952.
2.The facts are: The plaintiffs in these suits alleging themselves to be occupancy ryots filed the suits under Sec. 55 of the Madras Estates Land Act for issue of pattas. The Hanuman Bank Ltd., (in liquidation) represented by Official Liquidators, Brahmayya and Co. is the defendant in each of these suits. The liquidation ordered by this High Court is in progress. Both the Courts below held that the Deputy Collector, Kumbakonam, could not dispose of the suits by virtue of the provisions of Ss. 45-A, 45-B and 45-C of the amended Banking Companies Act, 1949, read with Sec. 11 of that Amending Act, that came into force on 18-3-1950. These suits were filed on or after 5-5-1951. Hence these second appeals by the defeated plaintiffs.
3. Before discussing the points raised before me by the learned Advocate-General on behalf of the appellants, I shall set out the relevant provisions of law to be considered.
4. Part III-A of the Banking Companies Act, 1949, deals with the special provisions for speedy disposal of winding up proceedings. Secs. 45-A, 45-B and 45-C of the said Act are as follows:
"45-A : The provisions of this Part and the rules made thereunder shall have effect notwithstanding anything inconsistent therewith contained in the Indian Companies Act,
instrument having effect by virtue of any such law but the provisions of any such law or instrument in so far as the same are not varied by, or inconsistent with the provisions of this Part or rules made thereunder shall apply to all proceedings under this Part.
45-B: The High Court shall, save as otherwise expressly provided in Sec. 45-C have exclusive jurisdiction to entertain and decide any claim Power of made by or against a banking Com-High Court pany which is being wound up (into decide eluding claims by or against any of all claims its branches in India) or any appli-in respect cation made under Sec. 153 of the of banking Indian Companies Act, 1913 (VII of companies. 1913), by or in respect of a banking company or any question of priorities or any other question whatsoever, whether of law or fact, which may relate to or arise in the course of the winding up of a banking company, whether such claim or question has arisen or arises or such application has been made or is made before or after the date of the order for the winding up of the banking company or before or after the commencement of the Banking Companies (Amendment) Act, 1953.
45-C. (1) Where a winding up order is made or has been made in respect of a banking corn-Transfer pany, no suit or other legal proceed-of pe iding ing, whether civil criminal, in proceed- respect of which the High Court has ings Jurisdiction under this Act and which is pending in any other court immediately before the commencement of the Banking Companies (Amendment) Act, 1953, or the date of the order for the winding up of the banking company, whichever is later, shall be proceeded with except In the manner hereinafter provided.
(2) The Official Liquidator shall, within three months from the date of the winding up order or the commencement of the Banking Companies (Amendment) Act, 1953, whichever is later, or such further time as the High Court may allow, submit to the High Court a report containing a list of all such pending proceedings together with particulars thereof.
(3) On receipt of a report under sub-sec. (2), the High Court may, if it so thinks fit, give the parties concerned an opportunity to show cause why the proceedings should not be transferred to itself and after making an inquiry in such manner as may be provided by rules made under Sec. 45-U, it shall make such order as it deems fit transferring to itself all or such of the pend
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.