1936 (7) TMI 9 - HC - Companies Law

Summary

Issues:
1. Interference with the order of the Chief Justice by the successor-in-office.
2. Official Liquidator's objection to granting inspection of documents.
3. Legal provisions regarding the power to review orders.
4. Merits of the objection raised by the Official Liquidator.
5. Interpretation of rules regarding inspection of documents.
6. Time limit for inspection as per the Chief Justice's order.
7. Legislative intention behind allowing inspection of records.
8. Discretion of the Court under Section 211 of the Companies Act.

Analysis:
The judgment concerns an application by a petitioner seeking compliance with an order allowing inspection of documents by the Official Liquidator. The first issue is whether the successor-in-office can interfere with the Chief Justice's order. The judge finds Section 202 of the Companies Act inapplicable and asserts the power of review vested in a judge, emphasizing the need for a formal application under the Civil Procedure Code, which was not made in this case.

Regarding the objection raised by the Official Liquidator, it is argued that the petitioner's intention was to gather information for the benefit of certain directors, but the judge highlights the contributory's right to inspect documents under rule 81 of the High Court's Rules and Orders. The judge dismisses the Official Liquidator's argument about the absence of a time limit in the Chief Justice's order, emphasizing the need for timely inspection before the examination of a specific individual.

The judgment delves into the legislative intention behind allowing inspection of records, emphasizing that the discretion lies with the Court under Section 211 of the Companies Act. The judge asserts that once the Court has granted such permission, it should not be interfered with, particularly based on grounds raised by the Official Liquidator. The judgment concludes by directing the Official Liquidator to comply with the Chief Justice's order and allow the petitioner to inspect the documents as per the law.

Furthermore, the judge admonishes the Official Liquidator for not challenging the Chief Justice's order through proper legal channels and reiterates the importance of following due process. The Official Liquidator is instructed to adhere to the judgment, emphasizing the Court's authority in such matters.