9911796707
|
Home
Issues:
- Whether proceedings under section 235 of the Indian Companies Act against a deceased director of a banking company can be continued after his death. - Whether the liability of a deceased director can be enforced against his legal representative in such proceedings. Analysis: The judgment pertains to an appeal filed by joint liquidators against the dismissal of an application under section 235 of the Indian Companies Act against certain directors of a bank. The main issue is whether proceedings against a deceased director can be continued and if their liability can be enforced against their legal representative. The court considered the precedent set by the Sankaran v. Kottayam Bank case, which established that under English law, the estate of a deceased director is not liable for misfeasance. This principle has been consistently applied in Indian courts as well. The court referred to cases such as Manilal Brijlal v. Rao Saheb Vandravandas and Official Liquidators, Mufassil Bank v. Jugal Kishore, which emphasized that section 235 is limited to an inquiry into the conduct of officers in relation to the company's property and was not intended to involve the court in matters relating to the estate of a deceased person. The court reiterated that the right to continue proceedings under section 235 ends with the death of the director, as per the language of the Act. The judgment concludes by affirming the principle that proceedings under section 235 cannot be continued against a deceased director and dismisses the applications to set aside the abatement of the appeal and bring on record the legal representative of the deceased director. The court clarifies that the decision is limited to the specific issue of continuing proceedings under section 235 and does not address other potential remedies against the estate of the deceased director.
|
