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TMI Blog1930 (10) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... mination of the appellants should not have been passed, and secondly, that in any case permission should not have been granted to conduct the examination with the help of the counsel. The National Sugar Mills, Limited, Delhi, was incorporated some time in the year 1921, with a subscribed capital of Rs. 2,18,000, though the authorized capital was Rs. 20,00,000. Out of the subscribed capital about half was actually paid by the shareholders and it appears that the appellants, Seth Haribans Parshad and Ajudhia Parshad, Bankers of Delhi were the managing agents of the company when it went into liquidation. On an application made on 19th April, 1927, by one Abdul Latif, a shareholder of the company, an order for its compulsory liquidation was m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be allowed inspection of the books in the Official Liquidator's possession between certain dates. They were also directed to produce all the property and cash, detailed in the Court's notice, in Court without prejudice to their rights therein. In pursuance of this notice the appellants appeared in Court and raised certain objections to their being examined at all and also to the Official Liquidator conducting their examination through the agency of counsel. The learned District Judge has disallowed both these objections by an order dated 21st June, 1930, and consequently this appeal has been lodged against that order. This appeal was presented on 14th July, 1930, and the first preliminary objection raised by Mr. Jagan Nath Aggarwal on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; Ind. Rul. [1929] Lah. 719; 30 PLR 525; 11 LLJ. 471 (FB) . In that case it was held that section 202, Companies Act, is wide enough to cover appeals against any order made in the matter of winding up of a company, provided such an order finally decides a dispute between the parties or deprives the appellant of a substantial and important right and is not a mere formal or interlocutory order De Souza v. S.B. Billimoria 96 Ind. Cas. 755; AIR 1926 Lah. 246; 3 Lah. Cas. 39 was followed in that case. The question involved in the Full Bench reference related to permission granted by the liquidation Judge to the Official Liquidator to amend his petition made against the directors of a company with a view to add a statement of fact which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ossession any property of the company, or supposed to be indebted the company, or any person whom the Court deems capable of giving information concerning the trade, dealings, affairs or property of the company and may examine him on oath concerning the same, either by word of mouth or on written interrogatories. The Court is also authorized to require such persons to produce any documents relating to the company. It would be observed, therefore, that persons mentioned in section 195 may be examined for the purposes specified therein even if they are suspected to have in their possession any property of the company or are supposed to be indebted to the company and further that any persons can be called upon by the Court to be examined conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that for an ordinary brief examination the help of the counsel is not necessary. No authoirty has been shown that legally the assistance of counsel is barred for an enquiry under section 195. On the other hand, it seems to me, that if a party is entitled to take part in or to conduct an examination, the ordinary rule must prevail that he is entitled to do so with the help of counsel. Whether having regard to the nature of the inquiry in the present case the help of counsel was necessary is a matter which is not really before me. In the first instance, I am not aware of the nature of the inquiry that has so far been made. It appears that part of the examination of the appellants has already taken place and a date is fixed for their further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope of an examination under section 195 is to seek information on matters which may be just or beneficial for the winding up of the company. If the conduct of persons connected with the formation or management of the company is to be investigated, that must be done under s, 196, Companies Act. The two sections referred to have quite different scopes. The first one is intended to be used for the purpose of promoting the liquidation proceedings while the second section is primarily intended to investigate the conduct of those who have been charged with its affairs. The examination in this case was ordered to take place under section 195, Companies Act, and consequently, I can only assume that it has been confined to the purposes mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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