Court : Kerala
Decided on : Dec-05-1960
Reported in : AIR1961Ker268; [1961]31CompCas154(Ker)
ORDERP.T. Raman Nayar, J.1. By this application brought under Section 38(3)(b)(iii) of the Banking Companies Act, 1949, the Reserve Bank of India seeks the winding up of a hanking company called the Palai Central Bank Ltd. The application is opposed by the company and by sixty-six creditors, some of them contributories, the debts due to whom, it is said, amount to about Rs. 70 lakhs out of a total outside liability of about Rs. 860 lakhs. Five creditors to whom, according to their claims about Rs. 2 lakhs is due, have appeared to support, or seemingly to support, the application.2. The company and some of its cerditors have applied under Section 391 of the Companies Act, 1956 for considering schemes of reconstruction and the company has also applied for a stay of the present proceedings pending disposal of these applications. In view of Section 44B of the Banking Companies Act, I have had the schemes examined by the Reserve Bank (in a rather summary way it is true) and it not appearing...
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