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Issues:
1. Validity of the order for examination of the appellants under section 195 of the Companies Act. 2. Permission for conducting the examination with the help of counsel. 3. Preliminary objection regarding the timeliness of the appeal. 4. Appealability of the order under section 202 of the Companies Act. Analysis: 1. The appeal challenged an order directing the examination of the appellants under section 195 of the Companies Act, contending that such an order should not have been passed. The appellants were managing agents of a company in liquidation, and allegations were made regarding missing funds and property entrusted to them. The court held that the appellants, given their position and access to company information, were proper subjects for examination under section 195. The section empowers the court to summon individuals possessing relevant information about the company's affairs for examination, irrespective of actual possession or indebtedness. The court dismissed objections against the examination order. 2. The appellants objected to the examination being conducted with the assistance of counsel. However, the court noted that the appellants had already conceded the court's right to assign the examination to the Official Liquidator. The court found no legal barrier to the Official Liquidator being represented by counsel during the examination. The decision to allow counsel's assistance was within the discretion of the District Judge, and no exceptional circumstances were presented to warrant interference with this discretion. 3. A preliminary objection was raised regarding the timeliness of the appeal, arguing that it should have been filed against an earlier order. The court clarified that the appeal was made against the order that significantly impacted the appellants' rights, which was the order of 21st June 1930. The court concluded that the appeal was not time-barred and proceeded to address the substantive issues raised. 4. The appeal also questioned the appealability of the order under section 202 of the Companies Act. Citing relevant case law, the court determined that the order in question, which decided the liability of the appellants to be examined in court, fell within the scope of section 202 and was appealable. The court overruled objections on appealability and proceeded to analyze the merits of the case. In conclusion, the court dismissed the appeal on its merits, emphasizing the broad powers of examination under section 195 of the Companies Act and the distinction between sections 195 and 196 concerning the scope of inquiries during liquidation proceedings. The court upheld the order for examination and the permission for the Official Liquidator to conduct it with the assistance of counsel, finding no legal impediment to such arrangements.
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