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TMI Blog1961 (10) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... Shah, J. The Banaras Bank Ltd. a public limited company having its registered office at Banaras (hereinafter referred to as the bank) was ordered on March 1, 1940, to be compulsorily wound up by the High Court of Judicature at Allahabad, and the official liquidator was appointed to conduct the proceedings in winding up. On September 12, 1942, an order was made by the High Court under section 187 of the Indian Companies Act, 1913 (VII of 1913), for payment of unpaid calls and the appellants, Jyoti Bhushan Gupta and Gokul Chand, whose names had been placed on the list of contributories, were directed to pay with interest Rs. 95,178-5-9 to the official liquidator of the bank. This order was, by virtue of section 199 of the Act, enforceable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number and to proceed with it according to law. Against that order, with certificate of fitness granted by the High Court under article 133 of the Constitution, this appeal is preferred. Counsel for the company contended that the order passed by the High Court not being a final order the appeal on certificate granted by the High Court is not maintainable. We have not thought it necessary, having regard to the importance of the question raised by the appellants and the fact that this court may in a proper case regularise the proceeding in this court by granting special leave, even if a certificate under article 133 of the Constitution could not be issued by the High Court, to hear the parties on the question as to the maintainability of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed office of the company is situate to pass orders under section 187 has been issued. The High Court was therefore the only court competent to direct under section 187 of the Indian Companies Act payment of the amount due from the appellants. Counsel for the appellants contends that the authority exercised by the High Court in directing payment under section 187 of the Indian Companies Act, 1913, is neither ordinary, nor original nor civil. He submits-that by section 187 a special power is vested in the High Court by the Indian Companies Act, 1913, which is exercisable in its extraordinary jurisdiction. To appreciate this argument it is necessary to refer to the statute authorising the establishment of the High Court, and the Letters Pat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be executed was not passed in exercise of the ordinary original civil jurisdiction. It is true that when the Letters Patent were issued the High Court had no jurisdiction under a law relating to companies of the nature exercised by the High Court, the character whereof falls to be determined in this appeal. But by clause 16 of the Charter Act and clause 35 of the Letters Patent of the Allahabad High Court jurisdiction which was not initially conferred upon the High Court could be conferred by legislation within the competence of the Governor-General in Council and the Governor in Council. By the Companies Act of 1913, the High Court was invested with jurisdiction to order payment of the amounts due by debtors of companies ordered to be w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Companies Act. The Judicial Committee of the Privy Council was called upon in Candas Narrondas In re[1889] I.L.R. 13 Bom. 533 to determine the true nature of the jurisdiction exercised by the High Court of Judicature at Bombay in respect of insolvent debtors. The Privy Council held that article 180 of Schedule II of the Indian Limitation Act (XV of 1877) (which was similar to article 183 of the Indian Limitation Act, 1908) applies to a judgment of a court for the relief of insolvent debtors entered up in the High Court, in accordance with section 86 of the statute 11 and 12 Vic, c. 21. It was held in that case that although a court exercising insolvency jurisdiction determines the substance of the question relating to an insolve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse of the duty cast upon it by law, according to which every other case of the same kind would be dealt with. It was, therefore, entered up in exercise of the ordinary original civil jurisdiction of the High Court." Counsel for the appellants contended that by clause 18 of the Letters Patent, the High Court of Bombay was invested with insolvency jurisdiction whereas the High Court of Allahabad is not invested by the Letters Patent with any jurisdiction in the matter of companies and, therefore, the principle of Candas Narrondas s case ( supra )does not apply. But under clause 18 of the Letters Patent a judge or judges of the High Court are to sit as a court for relief of insolvent debtors and powers and authorities with respect to or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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