1974 (1) TMI 69 - HC - Companies Law

Summary

Issues:
Jurisdiction of High Court vs. District Courts under the Companies Act, 1956.

Analysis:
The judgment concerns the jurisdiction of courts under the Companies Act, 1956. Section 10 of the Act defines the jurisdiction of courts, stating that the High Court has jurisdiction unless conferred on a District Court by the Central Government. A notification dated May 29, 1959, empowered all District Courts in India, except Jammu and Kashmir, to exercise jurisdiction under specified sections of the Act. In Himachal Pradesh, District Courts were granted jurisdiction subject to the orders of the Judicial Commissioner's Court. The judgment clarifies that the Judicial Commissioner's Court cannot revoke the jurisdiction already conferred by the Central Government on District Courts; it can only regulate its exercise. Thus, the jurisdiction under section 141 of the Companies Act in Himachal Pradesh belongs to the District Courts, not the High Court.

Outcome:
The petition, initially allowed by the court, was deemed not maintainable due to lack of jurisdiction. The order from October 19, 1973, was recalled, and the petition was directed to be presented to the appropriate court, i.e., the District Court, in accordance with the jurisdictional provisions of the Companies Act, 1956.