AIR 1962 RAJASTHAN 118 ::1962 RajLW 103 ::ILR (1961) 11 Raj 1022

Rajasthan High Court

Hon'ble Judge(s): Sarjoo Prosad , C.J. AND P. N. Shinghal , J

(A) Companies Act (7 of 1913) , S.235— Banking Companies Act (10 of 1949) , S.45H— Application u/S.235 - Prima facie case of misfeasance has to be made out. Where in the course of the winding up proceedings of a limited banking company the liquidator makes an application against the chairman of the bank under S.235 of the Companies Act 1913 (S.543 of the 1956 Act), under S.45-H of Banking Companies Act 1949, it has to be seen whether on the terms of the sections a prima facie case has been made out against the chairman. If it is shown that he is liable or accountable for any money or property of the Bank or has been guilty of misfeasance or breach of trust in relation to its assets, the court may pass an appropriate order directing repayment or restoration of the money or property.(Para 6) Held that it was clear from the recitals in the petitions that a prima facie case of misfeasance or breach of trust had been sought to be made out against the chairman and the directors of the Bank and disclosed materials on which action could be taken under S.235, Companies Act, 1913 read with S.45-H of the Banking Companies Act.(Para 6) (B) Companies Act (7 of 1913) , S.235— Application under - Appraisement of evidence - Nature of proof required - Burden, of proof.....