1957 (11) TMI 9 - HC - Companies Law

Court Jurisdiction of Circumstances in which a company may be wound up and Principles for interpretation of statutes

Summary

Issues:
1. Jurisdiction of District Courts under the Indian Companies Act, 1913 versus the Indian Companies Act, 1956 regarding pending winding up proceedings.
2. Interpretation of saving clauses in the repealing statute and the General Clauses Act, 1897.
3. Retrospective application of the Indian Companies Act, 1956 to pending proceedings.

Analysis:

1. Jurisdiction of District Courts: The issue raised in the judgment pertains to the jurisdiction of District Courts under the Indian Companies Act, 1913, in relation to pending winding up proceedings when the Indian Companies Act, 1956, came into force. The judgment discusses the common law principle that repealing a statute extinguishes its existence, including jurisdiction conferred by it. The court emphasized that without a saving clause, pending actions must cease upon repeal. However, the judgment explores saving clauses in the Act of 1956, specifically section 647, which preserves the manner and incidents of winding up proceedings under the Act of 1913. The court interprets "manner" and "incidents" broadly to encompass the entire process, indicating that the proceedings should continue under the provisions of the Act of 1913.

2. Interpretation of Saving Clauses: The judgment delves into the interpretation of the saving clauses present in the Act of 1956 and the General Clauses Act, 1897. It highlights that section 647 of the Act of 1956 aims to retain the jurisdiction of District Courts over pending winding up proceedings. Additionally, section 6 of the General Clauses Act, 1897, ensures that legal proceedings pending under a repealed statute are unaffected by the repeal. The court concludes that these provisions allow District Judges to adjudicate on pending proceedings as per the Act of 1913, without the need for transfer to the High Court.

3. Retrospective Application: The judgment addresses the issue of the retrospective application of the Indian Companies Act, 1956, to pending proceedings. It emphasizes that unless expressly stated or implied, statutes are presumed to operate prospectively. The court analyzes sections 647 and 658 of the Act of 1956 to ascertain the legislative intent to protect pending actions under the Act of 1913. Consequently, the court determines that the Act of 1956 does not automatically apply to pending litigations, allowing District Judges to continue adjudicating as per the repealed Act.

In conclusion, the judgment clarifies that the repeal of the Indian Companies Act, 1913, did not divest District Courts of jurisdiction over pending winding up proceedings, as saving clauses in the Act of 1956 and the General Clauses Act, 1897, preserved the continuity of such actions under the previous statute. The court's interpretation emphasizes the importance of legislative intent, statutory language, and the protection of ongoing legal proceedings during the transition between statutes.