1962 (6) TMI 32

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uidators in the creditors' voluntary winding up of the Industrial Bank Ltd., filed a suit against the appellants and the same has been decreed by both the lower courts. The defendant appellants in second appeal raise three objections to the maintainability of the suit itself. The objections are ( i ) that the liquidators have not filed in court the power of attorney or other written authority as c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... hority. This contention appears to be the result of a small confusion of thought. The bank is a legal entity, which is now in liquidation, and is represented by the liquidators. Therefore, the liquidators are not the agents of the bank, but do themselves constitute the bank. If the liquidators do not appear themselves and authorise somebody else to make the appearance, then alone rule 23 can hav .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... no evidence to show whether there was a general body meeting and whether that general body nominated the same person or others as liquidators. What appears from paragraph 1 of the plaint is that the respondents were nominated by the creditors at their meeting. From this the learned advocate for the appellants argues that since there is no evidence to show that there was a general body meeting and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... as liquidators and that since the creditors nominated the respondents, they filed the suit. He also offers to produce those records in this court if so directed. I do not think, in the circumstances above mentioned, it is necessary to get those documents here. Thus, this objection must also fail. The third objection is the absence of sanction for filing the suit. Under section 457 of the Compani .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... iquidator has to take necessary sanction to exercise any of the powers given by clauses ( i ) to ( iv ) of sub-section (2) of section 457 and not for the exercise of any other power. That means the sanction required is restricted to the exercise of the powers under clauses ( i ) to ( iv ) of section 457(2). Clauses ( i ) to ( iv ) of section 457(2) do not relate to the institution or defence of s .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X