1995 (7) TMI 328 - HC - Companies Law

Summary

Issues Involved:
1. Maintainability of the special appeal under Chapter VIII, rule 5 of the Allahabad High Court Rules, 1952.
2. Whether the Company Law Board can be treated as a court.

Summary:

1. Maintainability of the Special Appeal:
A preliminary objection was raised regarding the maintainability of the special appeal against the judgment of a learned single judge, who decided the first appeal u/s 10F of the Companies Act, 1956, against an order passed by the Company Law Board. The respondents argued that such a special appeal is not maintainable under Chapter VIII, rule 5 of the Allahabad High Court Rules, 1952. Rule 5 specifies that a special appeal shall lie to the court from a judgment in respect of a decree or order made by a court subject to the superintendence of the court, but not from orders passed in the exercise of appellate jurisdiction or in the exercise of jurisdiction under articles 226 or 227 of the Constitution, with certain exceptions.

2. Whether the Company Law Board is a Court:
The court examined whether the Company Law Board (CLB) can be treated as a court. The judgment detailed various precedents and legal definitions to distinguish between a court and a tribunal. The CLB, constituted u/s 10E of the Companies Act, possesses some trappings of a court, such as the power to summon witnesses, enforce attendance, and accept evidence. However, it was concluded that the CLB is a tribunal and not a court. The court noted that the CLB functions in a quasi-judicial manner, performing duties under the Act and other statutes, but it does not possess the inherent judicial power of the State like ordinary civil courts.

Conclusion:
The court held that the special appeal filed by the appellant is maintainable, as the Company Law Board is a tribunal and not a court within the meaning of Rule 5 of Chapter VIII of the Allahabad High Court Rules, 1952. The judgment emphasized that all courts are tribunals, but not all tribunals are courts, and the CLB falls into the latter category. The special appeal was thus allowed to proceed.