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Issues:
1. Appointment of liquidator in contravention of Companies Act. 2. Determination of whether the appointed firm is a body corporate. 3. Interpretation of the term "body corporate" under the Act. Analysis: The judgment delivered by Justice Patra of the High Court of Orissa pertains to an application filed by the Registrar of Companies challenging the appointment of a firm as the liquidator of a company. The company in question had undergone members' voluntary winding-up, and a Chartered Accountant firm, Rowe and Pal, was appointed as the liquidator. The Registrar contended that this appointment was illegal and violated the provisions of the Companies Act, specifically sections 502 and 513. The key issue for determination was whether Rowe and Pal qualified as a body corporate as per the Act. The definition of "body corporate" under section 2(7) of the Companies Act was crucial in this case. The Act excludes certain entities from the definition of body corporate, such as a corporation sole or a cooperative society. Justice Patra highlighted that corporations are categorized into corporations aggregate and corporations sole. While corporations sole were not relevant to this case, the focus was on corporations aggregate. These entities are described as a collection of individuals forming a single body with legal capacity akin to an individual, including the ability to hold property, contract, sue, and enjoy privileges. Contrasting corporations aggregate, a partnership firm operates based on a contractual agreement among individuals, with rights and liabilities governed by the partnership terms and relevant statutory provisions. Partnerships are considered a collective of individuals rather than a distinct legal entity. Justice Patra emphasized that a firm is essentially a convenient label for individuals conducting business together, with joint and several liability for partners. In this case, it was noted that one of the partners of Rowe and Pal explicitly stated that he was overseeing the liquidation proceedings, reinforcing the view that the firm was not a body corporate. The judgment concluded that the firm Rowe and Pal, being a partnership of chartered accountants, did not possess the characteristics of a body corporate as outlined in the Companies Act. As a result, the application filed by the Registrar of Companies was dismissed, and Rowe and Pal's appointment as the liquidator was deemed valid. The decision was made based on the absence of evidence demonstrating the firm's status as a body corporate, leading to the rejection of the application without costs.
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