Kartik Chandra Pal v Noakhali Union Bank (1968) | Bank Liquidation & Decree Execution

Banking Law Case 08 of 29 by Law Easy, for LL.B., CLAT PG, UGC NET Law and Judiciary exams. Case: Kartik Chandra Pal v Noakhali Union Bank Limited (1968), Calcutta High Court (Division Bench, May 1968). FACTS: The bank, which was in liquidation, had obtained a decree. The High Court transferred that decree to a subordinate court for execution. When outsiders claimed the attached property as their own, the executing court thought it had no power to decide their claims. LEGAL ISSUE: Does a court executing a bank's decree lose its power to decide questions arising in execution because the bank is being wound up and Section 45B gives the High Court special control? JUDGMENT: The Calcutta High Court held that once the winding up court itself transfers a decree for execution, the transferee court can decide all questions arising in that execution, including claims to the attached property. PRINCIPLE TO REMEMBER: Section 45B keeps control with the winding up court without paralysing the execution machinery that the court itself sets in motion. Distinguish between starting an independent claim and carrying out a decree already transferred for execution. PROVISIONS: Banking Regulation Act, 1949, Part IIIA and Section 45B; Order XXI, Rule 58 of the Code of Civil Procedure, 1908 (objections to attachment). EXAM NOTE: The ruling does not give lower courts general control over every dispute involving a bank in liquidation. It only protects lawful execution that the High Court has itself transferred. PLAYLIST (all 29 cases in order): https://www.youtube.com/playlist?list=PLbhYsrMKgACA COMPLETE LECTURE (all 29 cases with timestamps): https://youtu.be/ayAN7RLlfPM PREVIOUS CASE (07, In re Chotanagpur Banking Association): https://youtu.be/S8UbSLpQlHQ More law notes: https://www.thelaweasy.com If this helps your exam preparation, please subscribe to Law Easy. This video is for education and is not legal advice. #BankingLaw #BankingRegulationAct #CLATPG #Judiciary #LLB #UGCNETLaw #LawEasy