Section 67: Special provisions for assessing damages against delinquent directors, etc.

67. Special provisions for assessing damages against delinquent directors, etc.--(1) Where an application is made to the High Court under section 235 of the 1[Companies Ordinance, 1984 (XLVII of 1984)], against any promoter, director, manager, liquidator or officer of a banking company for repayment or restoration of any money or property and the applicant makes out a prima facie case against such person, the High Court shall make an order against such person to repay and restore the money or property unless he proves that he is not liable to make the repayment or restoration either wholly or in part: Provided that where such an order is made jointly against two or more such persons, they shall be jointly and severally liable to make the repayment or restoration of the money or property. (2) Where an application is made to the High Court under section 235 of the 1[Companies Ordinance, 1984 (XLVII of 1984)], and the High Court has reason to believe that a property belongs to any promoter, director, manager, liquidator or officer of the banking company, whether the property stands in the name of such person or of any other person as the ostensible owner, the High Court may, at any time, whether before or after making an order under sub-section (1), direct the attachment of such property or of such portion thereof as the High Court may think fit, and when the property so attached stands in the name of an ostensible owner, it shall remain subject to attachment unless the ostensible owner can prove to the satisfaction of the High Court that he is the real owner and the provisions of the Code of Civil Procedure, 1908 (Act V of 1908), relating to attachment of property shall, as far as may be, apply to such attachment. 2[(3) For the purposes of this section and section 70 of this Ordinance and section 235 of the 1[Companies Ordinance, 1984 (XLVII of 1984)], "property" includes property transferred or otherwise disposed of by the person referred to in sub-section (1) or any other person as ostensible owner of such property within two years preceding the commencement of proceedings under section 235 of the 1[Companies Ordinance, 1984 (XLVII of 1984)], or during the currency of such proceedings, if the High Court is satisfied by affidavit or otherwise that the transfer was otherwise than in good faith and for sufficient consideration.]

Effective date: 1962-06-07

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