1991 (11) TMI 211 - HC - Companies Law

Summary

Issues:
1. Validity of annual general meeting under section 166(2) of the Companies Act.
2. Jurisdiction of the High Court to grant relief in case of a breach of section 166(2) of the Companies Act.

Analysis:
1. The judgment deals with a challenge to the validity of an annual general meeting of a company held in Surat, allegedly in violation of section 166(2) of the Companies Act. The petitioner argues that the meeting should have been held at the registered office or within its vicinity, while the respondent contends that holding it within the postal limits of the city suffices. The respondent provides evidence of postal limits covering the registered office, supported by government circulars and correspondence. However, the petitioner asserts a distinction between postal limits of Surat city and Surat Division, claiming the meeting location falls outside the city's postal limits, thus breaching the Act's provisions.

2. The judgment delves into the jurisdictional aspect concerning the High Court's authority to address breaches of section 166(2) of the Companies Act. It examines relevant provisions, such as section 10 and section 2(11) defining the court's jurisdiction concerning company matters. The court determines that the High Court's jurisdiction under the Companies Act is specific and limited to matters specified within the Act. It clarifies that the civil court retains jurisdiction over breaches like those alleged in this case, as no special remedy is provided under the Act for section 166 violations. The judgment emphasizes that the High Court lacks general jurisdiction over all company law matters and must derive its jurisdiction from explicit statutory provisions.

In conclusion, the judgment dismisses the application, ruling that the High Court lacks jurisdiction to address the alleged breach of section 166(2) of the Companies Act. It highlights the specific and limited nature of the High Court's jurisdiction under the Act, emphasizing the role of civil courts in cases where no special remedy is provided. The decision refrains from determining the actual breach's impact on the meeting, given the lack of jurisdiction.