1942 (7) TMI 17 - DSC - Companies Law

Summary

Issues:
1. Appeal under section 202, Companies Act regarding remuneration for legal services.
2. Determination of legal adviser's remuneration by the Court.
3. Applicability of section 202, Companies Act for appeal.

Analysis:
1. The judgment pertains to an appeal under section 202, Companies Act concerning the remuneration for legal services provided by Mr. Tilokchand Chatomal Advani to the liquidators of a society. The Assistant Judge had allowed a sum of Rs. 2050 as remuneration to Mr. Tilokchand, along with additional writing charges, for representing the liquidators in numerous suits. The dispute arose as the liquidators appointed a new legal adviser, leading to a disagreement over the remuneration owed to Mr. Tilokchand for his services rendered during the winding up process.

2. The Court examined the circumstances surrounding the appointment and remuneration of Mr. Tilokchand. The learned Judge determined that the remuneration should be fixed based on the labor performed by Mr. Tilokchand rather than pleader's fees for each suit. The Court considered the nature of the suits, the complexity involved, and the practicality of recovering costs in deciding the appropriate remuneration. Ultimately, the Court awarded Rs. 2050 to Mr. Tilokchand for his legal services, in addition to writing charges for the suits he had handled on behalf of the liquidators.

3. The judgment addressed the issue of whether the order regarding the legal adviser's remuneration was appealable under section 202, Companies Act. The Court held that the order was not directly related to the winding up of the company but rather a ministerial decision to resolve a dispute between the liquidators and Mr. Tilokchand. Citing precedents, the Court determined that such orders, which are not integral to the winding up process, do not fall within the scope of appeal under section 202. Therefore, the Court dismissed the appeal on the grounds that the order was not subject to appeal under the Companies Act, leaving the applicant to pursue alternative remedies for the dispute.