1962 (6) TMI 34 - HC - Companies Law

Summary

Issues:
1. Maintainability of appeals under section 45G of the Banking Companies Act, 1949.
2. Interpretation of section 45N of the Banking Companies Act, 1949.
3. Relationship between section 45N and section 483 of the Companies Act, 1956.

Detailed Analysis:
The judgment addressed the issue of the maintainability of appeals from an order directing the public examination of appellants under section 45G of the Banking Companies Act, 1949. The respondent, the official liquidator, contended that no appeal was competent under section 45N of the Act. Section 45N provides for appeals from orders or decisions of the High Court in a civil proceeding when the subject-matter exceeds a specified amount. The court referred to a previous case to establish that section 45N allows appeals to a superior court from a single judge's decision. However, the court interpreted that the appeal under section 45N is not to a court superior to the High Court but within the High Court itself, based on the power of the High Court to make rules under section 45U of the Act.

Furthermore, the judgment delved into the relationship between section 45N of the Banking Companies Act, 1949, and section 483 of the Companies Act, 1956. Section 483 of the Companies Act provides for appeals from orders in the winding up of a company. The court analyzed the extent of the impact of section 45N on the power conferred by section 483. It concluded that the effect of section 45N is to restrict the right of appeal granted by section 483 only in specified cases, not affecting the right of appeal in other matters.

The court emphasized that the finality conferred by sub-section (3) of section 45N is crucial, indicating that it does not pertain to matters like directing a public examination under section 45G of the Banking Companies Act, 1949. The judgment also referred to A.N. Aiyar's commentary, which highlighted that the scope of section 45N is limited to specific cases involving claims that can be valued monetarily and parties against whom the claim is made. The court concurred with this view, ruling that the appeals in question were governed by section 483 of the Companies Act, 1956, and other relevant laws and rules, and thus, the preliminary objection to the maintainability of the appeals was overruled.