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TMI Blog1949 (11) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... nto voluntary liquidation and on 19th August, 1949. an order was passed for liquidation of the company under the supervision of the Court under section 221 of the Companies Act. The petitioner bank was ordered to be wound up by the Bombay High Court on 24th June, 1949. The dispute is with regard to Universal Rubber Works which the bank (the petitioner) claims is a partnership firm registered under the Indian Partnership Act with the Registrar of Firms at Bombay. The bank is claiming a very large sum of money. It is stated that on 31st December, 1948, Rs. 7,57,880-0-11 was found due and payable to the bank from the firm and to secure the repayment of the said sum a promissory note was executed as collateral security and the said firm hypothe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, taken, or proceeded with, notwithstanding a winding-up order (Section 172 of the Act), is often exercised. Thus secured creditors are, as a matter of course, given liberty to proceed with any action for enforcing their securities: Lloyd v. Lloyd Co. [1877] 6 Ch D 339. So too, liberty to proceed is often given where outsiders are involved in some dispute with the company, and it is desirable that the dispute should be decided in an action by the ordinary tribunals." In Lloyd v. David Lloyd Co., 1 it was observed by Jessel, M.R.: "Now, as a rule, a mortgagee has a right to realize his security, and of course, as incidental to that, a right to bring an action for foreclosure. Those who say that he should be restrained fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the view of James, L.J., also in the case which I have quoted above. In the present case I am inclined to give leave because: (1) the dispute is as to who owns the Universal Rubber Works; (2) the suit was filed against the firm Universal Rubber Works and the two Jandas and the Reserve Bank, (3) the claim is not frivolous; and (4) if the suit is allowed it will save multiplicity of proceedings. It was submitted by Mr. Sikri, learned counsel for the Official Liquidator of the Exchange Bank, that on 19th September, 1949, Ordinance XXIII of 1949 had been promulgated which added Sections 45A and 45B to the Banking Act and under these provisions all claims by or against a bank in liquidation had to be tried in the High Court having jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X
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