2004 (7) TMI 367 - HC - Companies Law

Summary

Issues: Application under section 456 of the Companies Act to set aside an ex parte order in S.B. Company Application No. 12/1998.

The judgment delivered by the High Court of Rajasthan pertains to an application filed by the Maharashtra State Electricity Board under section 456 of the Companies Act, seeking to set aside an ex parte order dated 3-4-2002 in S.B. Company Application No. 12/1998. The Court directed the Maharashtra State Electricity Board to make a payment of Rs. 20,84,824 with interest at 18% per annum to the Official Liquidator of M/s. Indo Engineering (Kota) Private Limited within one month. The Court also ordered the payment of assessed costs to the applicant. The Court carefully examined the documents provided, including correspondence between the Advocate and the Maharashtra State Electricity Board, and determined that the Board was not negligent in contesting the matter. The Court noted that the Board was seeking timely information on the stage of the matter and had engaged an Advocate. The Court found that the Board had sufficient cause and grounds for setting aside the ex parte order. Consequently, the application was allowed, the order dated 3-4-2002 was recalled, and S.B. Company Application No. 12/1998 was restored to its original number. In this case, no costs were awarded to either party.

In summary, the judgment involved the application of section 456 of the Companies Act to set aside an ex parte order in a specific company application. The Court carefully reviewed the evidence, including correspondence between the Advocate and the Maharashtra State Electricity Board, to determine that the Board had valid reasons for not appearing in the matter promptly. The Court found in favor of the Board, setting aside the ex parte order and restoring the original application without awarding costs to either party.