Can anyone explain this simply...

Praveen · 20 Aug 2026

Refer ultra vires page textbook example.

Mayank · 19 Aug 2026

Okay so this question is based on a case law Royal British bank vs. turquand in the doctrine of indoor management. As per this case, Bank can claim the amount as the loan was valid and there was no requirement to look into the company's internal working. However Bank can claim only that loan amount that can be traced. Since in this case study question, the company had utilise 2 crores which cannot be traced. Hence the Bank cannot claim this amount. But he can claim the amount of rupees 3 crores from the company as it was paid for the lawful debs.