Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | fully paid-up share Debts Adjustment Act Res judicata 1951 displaced Persons |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Displaced person-Shares in bank-Statutory right given by Act to get partly paid up shares converted into fully paid-up shares-Order of Company Judge allowing reduction of capital of bank-Whether doctrine of Res judicata applicable -" No cause for such refusal", Meaning of-Displaced Persons (Debts Adjustment) Act, 1951 (LXX of 1951), ss. 3, 19 (2), (4), (5). The appellant bank suffered losses due to the partition of India. Its scheme for reduction of capital was approved of by the Company Judge subject to the condition that the Bank should accept without any payment surrender of ordinary shares on which part payment was made from any displaced person entitled to relief under s. 19 of the Displaced Persons (Debts Adjustment) Art, so as to relieve such person from liability to pay the calls made and to be made. A period of two weeks was given to displaced person to exercise the option. The respondent was a share-holder of the appellant but he did not avail himself of the option given by the Company Judge. Later on, he asked the appellant bank under s. 19 (2) of the Displaced Persons (Debts Adjustment) Act to convert his 500 ordinary shares into 250 fully paid-up shares. On the bank refusing to comply with the requisition, the respondent filed a petition under s. 19(4) of the Act for an order dire:ting the bank to convert his 500 partly paid-up shares into 250 fully paid-up shares. The Tribunal granted the relief prayed for to the respondent, It also held that losses suffered by the bank and doubtful debts had been accumulating for a long time and the bank resorted to the scheme of capital reduction only after the passing of the Act of 1951 with a view to deprive the displaced share-holders of the benefit under the provisions of s. 19 of the Act. This view of the Tribunal was affirmed by a single judge and a Division Bench of the Punjab High Court. The bank appealed to this Court with special leave. |
Judge | Honble Mr. Justice J.C. Shah |
Neutral Citation | 1963 INSC 51 |
Petitioner | Oriental Bank Of Commerce Ltd. |
Respondent | Shri Harcharan Das Loomba |
SCR | [1964] 2 S.C.R. 231 |
Judgement Date | 1963-03-05 |
Case Number | 300 |
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