1955 (8) TMI 21 - HC - Companies Law

Court Jurisdiction of and Winding up - Power of High Court to retain winding up proceedings in district Court

Summary

Issues:
Jurisdiction of District Courts under the Indian Companies Act, 1913 in Rajasthan; Authority of High Court to entertain applications under the Act; Application of sub-section (3) of section 3 of the Indian Companies Act.

Analysis:
The judgment by Bapna and Ranawat, JJ. addresses the issues surrounding the jurisdiction of District Courts under the Indian Companies Act, 1913 in Rajasthan. The Indian Companies Act was adapted to Rajasthan with modifications by the Rajasthan Adaptation of Central Laws Ordinance, empowering the Government of Rajasthan to exercise jurisdiction under the Act. The Part B States (Laws) Act further incorporated the Indian Companies Act, subject to amendments. The judgment delves into the preservation of powers delegated under the previous law in Part B States, emphasizing the corresponding authority under the adapted Act. The judgment clarifies that the notification empowering District Courts in Rajasthan remains valid, affirming the authority's correspondence with the Act's provisions.

Regarding the authority of the High Court to entertain applications under the Act, the judgment cites precedents emphasizing that the High Court retains jurisdiction in company matters even when District Courts are empowered. The interpretation of section 3 of the Act highlights that the High Court's jurisdiction is not ousted by the delegation of powers to District Courts. The judgment elucidates that the conferment of powers on District Courts does not result in exclusive jurisdiction, preserving the High Court's authority to deal with company matters. The application of sub-section (3) of section 3 is discussed, indicating that proceedings in an inappropriate court may be saved, but not if there is an inherent lack of jurisdiction. The judgment concludes that the High Court can proceed with applications under the Act, with the option to transfer cases to District Courts based on jurisdictional considerations.

The judgment further explores the High Court's power under section 17 of the Rajasthan High Court Ordinance to remove and try cases falling within the jurisdiction of subordinate courts. This provision allows for the transfer of cases to the High Court for proper adjudication, emphasizing the broad interpretation of the term "suit" to encompass all civil proceedings. The judgment affirms the High Court's discretion to either continue proceedings or transfer cases to District Courts based on considerations of competent jurisdiction.