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Issues:
- Order for respondent to sign deposition taken at examination under section 268 of the Companies Act, 1948. Analysis: The liquidator of a company sought an order against the respondent, a former director of the company, to sign the transcript of his private examination under section 268 of the Companies Act, 1948. The respondent objected to signing the transcript despite the practice of taking shorthand notes and transcribing them for signature. The court held that the practice of reducing the evidence to writing through a shorthand note and transcript, which is then signed by the person examined, complies with the requirements of section 268(2) of the Act. The respondent's objection was primarily based on the contention that creating a full viva voce report of the examination was unfair. However, the court found that having an exact record of questions and answers removes doubt and uncertainty, ensuring a fair process. The alternative procedure suggested by the respondent, where the gist of answers is read out and recorded, was deemed impracticable for complex matters like those in companies' winding up. The respondent also raised concerns about errors in the transcript and the lack of opportunity to study it before signing. The court clarified that the person examined is entitled to read and study the transcript at leisure, correct any errors, and sign subject to those corrections. The standard procedure allows for pencil corrections in the margin of the transcript before signing. In conclusion, the court granted the order for the respondent to sign the deposition taken at his examination under section 268 of the Companies Act, 1948. However, the respondent was given the opportunity to review the transcript, make corrections, and sign accordingly. This decision aimed to ensure a fair and transparent process in line with legal requirements and established practices.
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