9911796707
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Issues:
- Refusal of the respondent to answer questions during an investigation under Section 135 of the Companies Act, 1929. - Justifiability of the respondent's refusal based on the presence of a shorthand writer during the examination. - Interpretation of the statutory provisions regarding the presence of individuals during investigations. - Application of legal precedents to determine the necessity of the shorthand writer's presence. - Assessment of whether the respondent's refusal amounted to contempt of court and appropriate measures for such refusal. Analysis: The judgment pertains to a motion by an inspector appointed to investigate a company's affairs under Section 135 of the Companies Act, 1929. The inspector sought court inquiry into the respondent's refusal to answer questions during the examination. The statutory provision mandates officers and agents of a company to produce all books and documents and answer questions during investigations. The inspector's report detailed the respondent's objection to a shorthand writer's presence during the examination, citing privacy concerns. The court analyzed the necessity of the shorthand writer's presence, emphasizing its role in aiding the inspector's duty to prepare a report, not for public disclosure. The court referenced a previous case to support the conclusion that the presence of essential individuals during such examinations is permissible. The court highlighted the House of Lords' decision in a similar case, emphasizing the need for private examinations under relevant Acts. The judgment underscored the importance of the shorthand writer for the inspector's duty performance and report preparation. The court concluded that the shorthand writer's presence was reasonably necessary, rejecting the respondent's justification for refusal. As a result, the court deemed the respondent's refusal unjustified and akin to contempt of court under Section 135(5) of the Act. Despite the respondent's apology, conditional on the court's ruling, the court ordered the respondent to pay the costs of the proceedings, considering the refusal's nature and implications. In summary, the judgment clarifies the legal obligations of officers and agents during investigations under the Companies Act, emphasizing the necessity of facilitating inspectors in carrying out their duties effectively. The court's decision underscores the importance of upholding statutory provisions and precedents to ensure the integrity of investigations and adherence to legal requirements.
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