1993 (7) TMI 307 - HC - Companies Law

Summary

Issues:
1. Jurisdiction of the High Court to entertain appeals under section 10F of the Companies Act, 1956.
2. Procedure for filing appeals under section 10F.
3. Determination of whether appeals under section 10F should be heard by a single judge or Division Bench.

Analysis:

Jurisdiction of the High Court:
The judgment addressed the question of whether the High Court, in its 'ordinary original civil jurisdiction,' can entertain appeals under section 10F of the Companies Act, 1956. The court clarified that appeals under section 10F can only be entertained on the original side of the High Court and not on the appellate side. The court emphasized that the jurisdiction of the High Court in relation to "company matters" arising from all areas in Maharashtra extends only to the original side of the High Court.

Procedure for Filing Appeals:
The judgment highlighted the correct procedure for filing appeals under section 10F. It stated that appeals under section 10F should be presented in the form of a memorandum of appeal that formulates questions of law arising from the impugned order. The court criticized the practice of filing appeals in the form of petitions and emphasized the importance of clearly stating the grounds of appeal in the memorandum. While acknowledging the prevailing practice of labeling and entertaining appeals as petitions, the court allowed parties in pending matters to apply for appropriate amendments but directed that future appeals must adhere to the correct form of a memorandum of appeal.

Single Judge or Division Bench Hearing:
Regarding the issue of whether appeals under section 10F should be heard by a single judge or Division Bench, the court noted that in Bombay, Gujarat, and Madras High Courts, these appeals are heard by a Single Bench, while in Delhi and Calcutta High Courts, they are heard by a Division Bench. The court refused to engage in the debate on whether appeals under sections 10F and 483 could be equated, emphasizing that the focus should be on answering the specific reference questions.

Conclusion:
In conclusion, the court answered the reference questions as follows:
- Appeals under section 10F can only be entertained by the High Court on the original side.
- Appeals must be presented in the form of a memorandum of appeal, not as petitions, and should clearly state the questions of law.
- Appeals under section 10F should be heard by the company court on the original side as a "company matter" until appropriate rules are established. The court directed the Chief Justice to frame rules concerning appeals under section 10F and emphasized compliance with the correct procedure for future appeals.