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TMI Blog1961 (2) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... settle list of its debtors in respect of various amounts shown due from them and payment orders should be passed against the respondents. The petitioner-bank is working under the scheme of arrangement sanctioned by this court on 21st of August, 1959, in L. M. 39 of 1958 in Civil Original No. 126 of 1958. It was alleged that the names of the respondents were borne on the register of the members as holders of shares in the bank and that a call of the unpaid share capital of Rs. 10 on every share was made from its shareholders but the respondents failed to make payment of the call money which was due from them. Under clause 4 of the scheme, the shares of which calls in arrears are not paid within two months after the date of the sanction of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a High Court makes an order under section 391 of the Companies Act 1956, sanctioning a compromise or arrangement in respect of a banking company, it shall have power to supervise the carrying out of the compromise or arrangement and may at the time of making such order or at any time thereafter give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper working of the compromise or arrangement." "45M. Special provisions for banking companies working under schemes of arrangement at the commencement of the Amendment Act. Where any compromise or arrangement sanctioned in respect of a banking company under section 391 of the Companies Act, 1956, is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imilar provision and, therefore, the Banking Companies Act conferred an additional power on the High Court to enforce the scheme of arrangement and to sanction a compromise in respect of a banking company. Under the Banking Companies Act exclusive jurisdiction was conferred upon the High Court to entertain and decide any claim made by or against a banking company which was being wound up. Section 45M is in the nature of a special provision as the heading of that section also shows. I do not find any force in the argument of the learned counsel for the respondents that section 45M, on account of the omission of section 45K, conferred certain powers upon the High Court only in those cases where a banking company was functioning under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lternative mode of winding up and, therefore, such powers as the High Court possesses under section 45D of the Banking Companies Act, 1949, will also entitle it to exercise the same powers for enforcement of the scheme of arrangement, etc. He has rested his argument on three decisions reported in Madan Gopal v. Peoples Bank of Northern India Ltd. [1935] 5 Comp. Cas. 313, 326 Motilal Kanji and Co. Natvarlal M. Jhaveri [1932] 2 Comp. Cas. 64. Travancore National and Quilon Bank Ltd. In re AIR 1939 Mad. 318 ; [1939] 9 Comp. Cas. 14 . In the case of Madan Gopal s case ( supra ) Tek Chand, J., said "section 153 of the Indian Companies Act makes provision not merely for schemes for the 'resuscitation' or 'reorganisation' of companies, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealing with winding up; and, therefore, a scheme of that particular kind was correctly described as an alternative mode of winding up. That particular provision which was being considered was applicable only to a company in liquidation. This is also clear from the observations of Vaughan Williams, J., only a portion of which was noticed in the three decisions referred to above. He said: "The scheme of arrangement under the Act of 1870 is as I have had occasion to point out in several cases an alternative mode of liquidation which the law allows the statutory majority of creditors to substitute for the pending winding up, whether voluntary or under the court, just as the Bankruptcy Act, 1869, allowed the creditors the substituted liquidati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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