1958 (8) TMI 32 - HC - Companies Law

Summary

Issues:
1. Application for authorization under sections 397, 398, 399, 402, and 403 of the Companies Act, 1956 for consolidation of accounts and execution of necessary documents with State Bank of India.
2. Authorization for settlement of disputes regarding document execution by the special officer.
3. Authorization for the constitution of an advisory board to assist the special officer in managing the company's affairs.

Analysis:
1. The judgment addresses an application by the Life Insurance Corporation of India seeking authorization under various sections of the Companies Act, 1956 to consolidate accounts with the State Bank of India and execute necessary documents. The court finds no objection to this request and grants the authorization as requested.

2. The next issue pertains to the settlement of disputes regarding document execution by the special officer. The application seeks authorization for the special officer to have necessary documents settled by the Advocate-General of West Bengal in case of a dispute with the State Bank. The court finds this request reasonable and grants the authorization accordingly.

3. The final issue involves the authorization for the constitution of an advisory board to assist the special officer in managing the company's affairs. The court examines the powers under section 402 of the Companies Act, which allow for the regulation of a company's affairs. The court deems the constitution of an advisory board appropriate in this case to assist the special officer in managing the company effectively. The advisory board is constituted with representatives from relevant entities such as Hindusthan Steel (Private) Ltd., the Railway Board, the Ministry of Commerce and Industry, and the State Bank of India. The terms and conditions for the advisory board are laid out, specifying the subjects on which advice may be sought and the role of the special officer in decision-making despite advisory input. The court makes an order to constitute the advisory board based on the outlined terms and conditions.

In conclusion, the judgment addresses the various issues raised in the application, authorizing the consolidation of accounts with the State Bank of India, settlement of disputes over document execution, and the constitution of an advisory board to assist the special officer in managing the company's affairs effectively.