Supreme Court of India · 1964-03-11
K. JOSEPH AUGUSTHI AND TWO ORS. vs M. A. NARAYANAN, OFFICIAL LIQUIDATOR,PALAI CENTRAL BANK
- Citation / case number
- SC 1963/78
- Court
- Supreme Court of India
- Petitioner
- K. JOSEPH AUGUSTHI AND TWO ORS.
- Respondent
- M. A. NARAYANAN, OFFICIAL LIQUIDATOR,PALAI CENTRAL BANK
- Author
- GAJENDRAGADKAR, P.B. (),WANCHOO, K.N.,SHAHC.,AYYANGAR, N. RAJAGOPALA,SIKRI, S.M.
- Bench
- GAJENDRAGADKAR, P.B. (CJ),WANCHOO, K.N.,SHAH, J.C.,AYYANGAR, N. RAJAGOPALA,SIKRI, S.M.
Judgment text excerpt
The Supreme Court held that Section 45G of the Banking Companies Act, 1949, does not violate Article 20(3) of the Constitution, as the provision allows for public examination of directors without them being accused of an offence at the time of examination. The Court clarified that the acts or omissions under Section 45G need not be criminal but can include commercially unsound actions. The Court upheld the High Court's order for public examination, stating that the essential condition for the application of Article 20(3) was absent in this case.