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Issues:
Application for setting aside ex parte proceedings in relation to a company application under section 543 of the Companies Act, 1956; Absence of respondent on specified dates leading to ex parte proceedings; Requirement of filing a written statement by respondent; Variations in procedure under Companies (Court) Rules, 1959 compared to the Code of Civil Procedure. Analysis: The judgment concerns an application for setting aside ex parte proceedings related to a company application under section 543 of the Companies Act, 1956. The court noted that the respondent was absent on specified dates, leading to ex parte proceedings. The key issue was whether the respondent was required to file a written statement and the effect of their absence on subsequent proceedings. The court examined the procedural variations under the Companies (Court) Rules, 1959, compared to the Code of Civil Procedure, specifically focusing on the requirement of filing a written statement by the respondent. The judge emphasized the distinction between company petitions and company applications, highlighting the specific procedures outlined in the rules for each category. The court delved into the procedural intricacies under the Companies (Court) Rules, emphasizing the differences in requirements for applications moved by petitions and judge's summons. The judgment highlighted the specific rules governing applications under sections 542 and 543 of the Act, which necessitated a judge's summons. It was noted that the procedure under these sections differed significantly from the Code of Civil Procedure, resembling the English court system's approach to initiating proceedings. The judge concluded that in such cases, respondents were not obligated to file a written statement upon appearance, contrary to the requirements under the Code of Civil Procedure. Furthermore, the judgment explored the procedure for other company applications instituted through judge's summons under different sections of the Companies Act. The court discussed the necessity of supporting a judge's summons with an affidavit containing the facts of the claim to enable the respondent to file a written statement. The judgment highlighted the reliance on the Code of Civil Procedure for guidance in the absence of specific rules under the Companies (Court) Rules, emphasizing the need for adherence to procedural requirements unless varied by the judge's discretion. In conclusion, the court held that the respondent in the present proceedings under section 543 of the Companies Act was not mandated to file a written statement. Consequently, the application to set aside the ex parte proceedings was rejected, allowing the applicant to rejoin the proceedings at the current stage. The judgment clarified the procedural nuances under the Companies (Court) Rules, aiming to provide clarity on the appropriate course of action in different types of company applications.
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