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Issues:
1. Refusal to accept resignation of the official liquidator in winding up proceedings of a company. 2. Interpretation of section 176(1) of the Companies Act regarding the resignation of an official liquidator. Detailed Analysis: 1. The judgment involves an appeal against an order of the Assistant Judge in the winding up proceedings of a company where the official liquidator sought to resign due to lack of funds and support. The official liquidator stated that he could not even employ a clerk without paying from his own pocket, hindering the preparation of necessary lists and statements. The Judge refused to accept the resignation, directing the official liquidator to continue his work and submit a detailed report promptly. Despite subsequent attempts by the official liquidator to be relieved of his duties, the Judge rejected the reports as insufficient compliance with the order, leading to the appeal to the Chief Court of Sind. 2. The appeal raised the issue of the interpretation of section 176(1) of the Companies Act regarding the resignation of an official liquidator. The argument centered on whether an official liquidator can resign at any time or only on showing due cause. The court referred to a case from the Punjab Chief Court and compared the relevant provisions of the Indian Companies Act with the English statute. The court concluded that an official liquidator may resign only on showing due cause, as per section 176(1) of the Companies Act, which states that "Any official liquidator may resign or be removed by the Court on due cause shown." The court emphasized that the absence of the word "may" before "be removed" indicates a link between resignation and removal, subject to the same condition of showing due cause. 3. The court further discussed the circumstances under which the court might refuse to accept the resignation of an official liquidator, such as when the resignation could be detrimental to the company's affairs or when the official liquidator has shown due cause for resignation. In this case, the court found it unreasonable to expect the official liquidator to continue at his own expense with no prospect of recovering costs from the petitioner. The court concluded that the official liquidator had shown due cause for resignation, and the Assistant Judge was wrong in refusing to accept it. The court set aside the order and accepted the official liquidator's resignation, leaving further action to the discretion of the Judge according to the law. In conclusion, the judgment addressed the refusal to accept the resignation of the official liquidator in a company's winding up proceedings and provided a detailed analysis of the interpretation of section 176(1) of the Companies Act regarding the resignation of an official liquidator. The court emphasized the importance of showing due cause for resignation and ruled in favor of accepting the official liquidator's resignation in this case.
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