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TMI Blog1933 (2) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... n his application in relation to the company since its formation, and asked that the persons so named should be publicly examined. Appended to the application was a schedule in which appeared a statement of the facts as against each of the persons named in the application, from which the official liquidator asked the court to infer that fraud had been committed by them; for example, as regards one of them Kunwar Gopi Nath Singh it was said: "This man was one of the partners of Vidyarthi Tandon & Co., who were the managing agents of the Indian States Bank, Ltd., and was one of the signatories to the memorandum and articles of association. He was one of the first directors of the company and as such made the first allotment of shares, which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration of the application, direct that any person who has taken any part in the promotion or formation of the company, or has been a director, manager or other officer of the company, shall attend before the Court on a day appointed by the Court for that purpose, and be publicly examined as to the promotion or formation or the conduct of the business of the company, or as to his conduct and dealings as director, manager or other officer thereof." It is contended by counsel for the officers of the company sought to be publicly examined that where a charge of fraud is made, it is a charge of a criminal nature and the person to be examined is entitled to have notice of the charge or charges in the same way as he would have notice under the In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, Section 181 of the Act of 1929 gives the official known as the official receiver powers which are not given to the liquidator in India by the Indian Companies Act. Section 181 of the 1929 Act is the same as Section 147 of the Act of 1908 which was in force in England when the Indian Act was passed. By Section 181 of the English Act the official receiver is entitled to have a statement of the affairs of the company verified by affidavit submitted to him by the officers of the company to be wound up. He is also entitled by Rule 50 (2) made under the Act to hold personal interviews with the officers of the company for the purpose of investigating the company's affairs, and the duty of every person is to attend at the official receiver's o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llahabad High Court Rules allow the rules of the English Court to be used where there is no rule made for this Court, provided of course that the rules in England are made under a section similar to a section of the Indian Act. The English rules provide for an examination similar to that under Section 195 to be held in Chambers, and therefore a similar examination under that section in this country is also held in Chambers. We are not of opinion, however, that the provision under Section 195 give the official liquidator the powers of an official receiver in the Courts in England; for instance, a person summoned under Section 195 "may demand his expenses". In India expenses may be a large sum, as the officers of the company in liquidation ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated in application itself to show that a prima facie case exists against that person. Once the official liquidator has made out any prima facie case of fraud against an officer, the examination is not to be confined to the particular fraud mentioned in the application. It must be remembered that Section 196 is a section designed for a through investigation of the affairs of the company and the actions of the officers. It is further to be noted that the only objection which an officer of the company can make to an order of the court passed ex parte against him for his public examination is one of jurisdiction. He is not entitled at that stage to endeavour to show that the charge of fraud is incorrect. He may of course, do so on his publi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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