Pursuant to the resolution passed by the Bank at an extraordinary General Meeting on November 29, 1951 an application was submitted before the District judge, Delhi exercising powers of the Company judge for an order under ss.
The petition was resisted by the Bank, inter alia, on the grounds that the order of the Company judge sanctioning reduction of capital and granting facility for surrender their holding to shareholders entitled to apply under s. 19 2 of the Act was companyclusive and binding upon all shareholders and the respondent having failed to avail himself of the option given by the order was number entitled to enforce his rights under s. 19 2 .
They also resolved to reduce the capital of the Bank and for that purpose an extraordinary General Meeting of the Bank was companyvened on November 29, 1951 and special resolutions were passed reducing the issued and subscribed capital of the Bank to Rs.
10/ each, and 24,200 B class ordinary shares of Re.
19 D of 1955.
Appeal by special leave from the judgment and order dated November 13, 1957, of the Punjab High Court at Chandigarh, in Lettes Patent Appeal No.
L. Gosain, O. P. Malhotra and S. N. Anand, for the appellant.
Bakshi Mehtah Singh Sawhney, H. K. L. Sabharwal and I. S. Sawhney, for the respondent.
4,56,137 ordinary shares of Rs.
1/ each.
In December 1950, the Directors of the Bank made a call of Rs.
5/ were paid.
This companydition was accepted by the shareholders who appeared at the hearing.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The judgment of the Court was delivered by SHAH J. The Oriental Bank of Commerce Ltd. was incorporated in February 1943 under the Indian Companies Act, 1913.
up capital of the Bank as on December 31, 1946 was approximately Rs.
This reduction was to be effected by cancelling the paid up capital to the extent of Rs.
Power to set up Tribunals having authority to exercise jurisdiction under the Act was also companyferred by the State Government.
5/ each and 24,200 B class ordinary shares of annas 8 each.
March 5.
The paid.,
10,57,850/ .
5/ on each ordinary share and annas 8 on each B class ordinary share.
Before the special resolution was passed the Parliament enacted the Displaced Persons Debts Adjustment Act, 70 of 1951.
300 of 1961.
The capital of the Bank was divided into 5,97,584 ordinary shares of Rs.
This view of the Tribunal was affirmed in appeal by Khosla J. of the Punjab High Court, and also by a Division Bench in an appeal under cl.
By 1950 the accumulated losses of the Bank amounted to Rs.
The Bank had its registered office at Delhi and it opened branches in Lahore and in other towns which are number in Pakistan.
23 lakhs On account of disturbances which followed in the wake of the setting up of the Dominions of India and Pakistan, the Bank lost a substantial part of its assets in the territory number called West Pakistan and was unable to recall its advances.
On January 7, 1954 he applied to the Bank under s. 19 2 of Act 70 of 1951 to companyvert his holding of 500 ordinary shares into 250 fully aid up shares.
2/8 per share on its ordinary shareholders.
10/ each on which Rs.
