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TMI Blog1955 (8) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... promulgated on 24th January, 1950, and section 3 of the Act was modified so as to substitute Government of United State of Rajasthan for Central Government in the proviso to sub-section (1) of section 3 of the Act. On 9th August, 1950, the Government of Rajasthan in exercise of the powers conferred by the modified proviso to sub-section (1) of section 3 of the Act issued a notification empowering the District Courts (District Judges) in Rajasthan to exercise all the jurisdiction conferred by the Indian Companies Act, upon the court. On 1st April, 1951, the Part B States (Laws) Act came into force and the Indian Companies Act (VII of 1913) was applied in its entirety subject to certain amendments. One of such amendments was the insertion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unable to pay its debts. Petition No. 4 of 1954: This petition was made by the Shekhawati Agencies Ltd., Jaipur, on 14th June, 1954, under section 153 and section 153A of the Indian Companies Act for sanction ot a scheme by which the assets and liabilities of the Shekhawati Agencies Ltd. were sought to be transferred to Rajasthan Stores Ltd. on certain terms and conditions. Petition No. 5 of 1954: The Greater Rajasthan Investment Trust Ltd., Jaipur, applied on 14th June, 1954, under sections 153 and 153A of the Indian Companies Act to transfer their assets and liabilities to the Rajasthan Stores Ltd. under certain terms and conditions. Petition No. 6 of 1954: The Bullion Exchange Ltd. and Gold and Silver Merchants Association Ltd., J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise powers under the Indian Companies Act, all these cases were not triable in this court. The matter came before the learned Single Judge and he has referred the following questions to a Division Bench: 1.Whether after the coming into force of the present Companies Act, the notification No. F. 1(28) Judicial/50 dated the 9th August, 1950, published in the Rajasthan Gazette Part I dated the 19th of August, 1950 Page 359, is still in force and the District Courts have powers to entertain applications under the Indian Companies Act, 1913. 2.If the District Courts have such powers can this court also entertain applications under the said Act. 3.If this court is not authorised to entertain applications under the Companies Act by virtue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us preserved by the second proviso to section 6 of the Part B States (Laws) Act. An ingenious argument was raised by Mr. Gauba on behalf of petitioner in Petition No. 1 of 1955 that the Rajasthan Adaptation of Central Laws Ordinance adapted the Central Act without any modification of section 3, and, therefore, the notification of 9th August, 1950, was ultra vires. There is no doubt that in the schedule there is no mention of any modification of section 3 but in sections, clause ( iv ), containing the general modifications in respect of all Acts adapted, it is provided that the references to Provincial Government or any other Government in the adapted Act will be deemed to be references to the Government of United State of Rajasthan. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion so conferred be the court in respect of all companies having their registered offices in the district" do not expressly exclude the jurisdiction of the High Court in company matters. Craies on Statute Law (Fifth Edn.) observes at page 116 after reference to the judgment of Tindal, C.J., in Albon v. Pyke [1842] 4 M G. 421 at p. 424 that "the general rule undoubtedly is that the jurisdiction of superior courts is not taken away except by express words or necessary implication." The words "such District Court shall be the court" do not mean that it would be the exclusive court. The definite article "the" before "court" has no more significance than pointing to the court authorised to deal with company matters. What is intended seem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply in cases covered by sub-section (1) and its applicability would be more consistent if the jurisdiction of the High Court does not cease by conferment of powers on the District Court. Our answer to the second question is, therefore, that on conferment of powers on the District Court the applications under the Companies Act in respect of matters in which the District Court is authorised to act are to be entertained by the District Court and although the High Court would undoubtedly possess the power to be exercised by the court under the Act it will not entertain applications in respect of matters which can be dealt with by the District Court. Question No. (3): As observed above the High Court does not suffer from inherent want of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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