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1927 Supreme(Lah) 109
Lahore High Court
Zafar Ali, J.
Indian Merchants Bank, Ltd, In Liquidation - Appellant
Versus
Jogindra Singh - Respondent
Decided On : 06-12-1927
JUDGMENT
Zafar Ali, J. - This is an appeal by the Official Liquidator of the Indian Merchants Bank Ltd., Amritsar, against an order of the Additional District Judge of Amritsar, refusing to place on the list of contributories the name of Bawa Jogendra Singh, respondent.
2. The order is based on the finding that Jogindra Singh's application for shares was subject to a condition which was accepted by the Board of Directors but was not fulfilled and that Jogindra Singh had obtained an ex-parte decree against the bank for a refund of the money that he had paid with his application for shares. The alleged condition was that a branch of the bank would be opened at Muktsar for 12 months. A branch was opened but was closed after one month. One of the late directors of the bank appeared in the witness box and deposed that the condition set up by the respondent had been agreed upon. There was no evidence in rebuttal. So the finding that the alleged condition precedent was proved cannot be interfered with. Further there was a decree of a civil Court based upon that condition. The Official Liquidator, however, contends that the civil Court had no jurisdiction in the matter and refers to Section 38, Companies Act, in support of his contention. But that section does not exclude from the jurisdiction of ordinary civil Courts a suit of the class in question. In Union Indian Sugar Mills v. Jai Deo A.I.R. 1922 All. 258 it was held on a construction of Section 38, Companies Act 1913, that the District Judge is not obliged to decide a question of title raised in a proceeding before him under this section. This indicates that the jurisdiction of civil Courts to decide questions falling within the purview of Section 38 is not excluded. The decree in question though ex parte is binding on the bank, and the Official Liquidator is not competent to impugn it. This being so the appeal fails, and is dismissed with costs.
