9911796707
TMI Blog1930 (3) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to three months' notice of withdrawal, bearing interest at 3 per cent. per annum from February 24, 1910; payable on January 1, and July 1 of each year." Syed Zaffar Husain died on June 10, 1910. He left a widow, Mussammat Husain Bandi, a daughter, Amtul Zainab, aged about 4 years, and a son, Arif Husain, aged about 2 years. These were his heirs under the Muhammadan Law and were entitled to the amount of the deposit together with interest. It ought to be noticed that Syed Zaffar Husain died before the fixed deposit had matured for payment. Mussammat Husain Bandi, the widow had left this country and lived in Iraq from 1913 to 1917. She died in 1917, the exact date of her death cannot be ascertained from the record. Mussammat Am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the heirs of Syed Zaffar Husain. Not having exercised the option to accept preference shares on or before January 5, 1917, they became entitled to hold debentures from the Bank, carrying interest at the rate of 4 per cent. per annum according to the face value of their deposits. The debenture holders appear to have appointed three trustees to act for and look after their interests. A formal deed of trust was executed on December 18, 1915. The effect of this document was that a floating charge was created in favour of the debenture holders on all the assets belonging to the Bank of Upper India. We do not know what the powers of the trustees were under this deed of trust. On or about January 31, 1917, a meeting of the debenture hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g upon him. The tactics adopted by the Bank of Upper India, Limited, were dilatory and obstructive. Upon the plaintiff claiming the money, the Bank insisted upon the plaintiff producing a Succession Certificate. A Succession Certificate was produced in due course. The Bank then repudiated the plaintiff's claim. Upon the original fixed deposit receipt being produced in support of the plaintiff's claim, the defendant Bank refused to admit its genuineness and put the plaintiff to its proof. A written statement attested by Mr. H. Hunter, liquidator has been produced in this case which consists of 26 paragraphs-Various pleas were taken in defence but it is necessary to notice only two of the pleas which are material for the purpose of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imited. This document was unregistered and, therefore, could not effectively operate to transfer the assets to the Trust of India, Limited. We are clearly of opinion that the plaintiff's cause of action as a holder of debentures in pursuance of the composition scheme sanctioned by the High Court on June 2, 1915, under section 153 of the Indian Companies Act remains unimpaired. The original rights of the parties under the fixed deposit dated March 1, 1910, became replaced by the rights which came into existence under the aforesaid order of the High Court. The plaintiff and the other co-heirs became, therefore, the debenture holders of the defendant company. They could not lose those rights except either by a fresh contract between the partie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es have acted on the terms of the agreement and in arrangement of their rights in accordance with the said terms, equity steps in. In such cases, equity will support a transaction clothed imperfectly in those legal forms to which finality attaches after the bargain has been acted upon : [ Muhammad Musa v. Aghore Kumar Gangoli 42 C. 801 ; 28 Ind. Cas. 930; 17 Bom. L.R. 420; 21 CLJ 231 ; 28 MLJ 548 ; 19 C.W.N. 250 , 13 ALJ 229 ; 17 M.L.T. 143 ; 2L.W. 258 ; [1916] M.W.N. 621 ; 42 I.A. 1 (P.C.)] . Where the Statute makes it imperative that certain conditions must be fulfilled, the non-fulfilment of these conditions cannot be supplied by invoking the doctrine of part performance. The assets of the Bank of Upper India, Limited, consisted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the deopsit because she was a major. She was away from the country when the Bank of Upper India, Limited, went into liquidation and she died in a foreign land. Mussammat Amtul Zainab died a minor. Plaintiff was a minor at the death of his father and continued to be a minor at the date of the present suit. The lower appellate Court has relied upon Article 60 of the Indian Limitation Act and held that the suit was within limitation as being within three years from the time when the demand was made by the plaintiff for his money. The demand was made in 1925. Article 60 of the Limitation Act prescribes a period of three years from the date when the demand is made in a suit "for money deposited under an agreement that it shall be paya ..... X X X X Extracts X X X X X X X X Extracts X X X X
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