Law: Companies Act (VII of 1913), (as adapted for Pakistan by Adaptation of Central Acts and Ordinances Order, 1949)

Section: 235

Companies Act (VII of 1913), S. 235 read with Banking Companies Ordinance (LVII of 1962), Ss. 61 & 67-Respondent purchasing fixed deposit receipt with disputed money of petitioner deposited in Bank after getting it transferred to his account ---Application of Petitioner, under S. 235, held, maintainable against bank as well as respondent-Section 67, Banking Companies Ordinance, 1962 empowers High Court to follow property whether it stands in name of promoters, directors, liquidator or any officer of company or of any other person as ostensible owner. Section 235, Companies Act, 1913 is applicable to any person who has taken part in the formation or promotion of the company, or any past and present Directors, Manager or liquidator or any officer of the company. After examining into the conduct of the promoter, Director and Manager, liquidator or officer the Court can compel him to restore the money or property or any part thereof. Section 67, Banking Companies Ordinance, 1962 also shows that the application must be directed against any promoter, director, manager, liquidator or officer of a Banking Company. But sub section (2) shows that where any application has been made under section 235 of the Companies Act, 1913 the High Court has power to follow the property whether it stands in the name of the above mentioned persons or of any other person as the ostensible owner. Dates of hearing: 23rd June; 20th July; 3rd and 10th August; 10th, 16th, 17th, 21st, 23rd, 24th November 1967 and 10th January 1968.   JUDGMENT This is an application under section 235 of the Companies Act read with section 67 of the Banking Companies Ordinance, 1962.        The petitioner Khondker Faizur Rahman had a current Deposit Account No. 1539 in the Southern Bank Ltd. till it suspended its business by the order of this Court dated 28-4-64. Later on the State Bank of Pakistan was appointed as the Official Liquidator by this Court by its order dated 10th November 1964. It is alleged by the petitioner that he deposited one cheque for a sum of Rs. 41,400.00 on 20-4-64 and another cheque for a sum of Rs. 29,280.00 on 21-4-64. The petitioner alleges that…