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TMI Blog1960 (8) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... curtail evidence to be tendered. It is only because all sides have desired that I should do so at this stage, that I give my ruling as regards the true construction and effect of the section. It may be stated that the plaintiffs in this suit claim to be heirs and legal representatives of one Harishankar Bagla, who, according to the plaintiffs, died intestate at Cawnpore on or about August 16, 1959. The deceased, Harishankar, was a partner in defendant No. 5 firm of Messrs. Agarwal and Co. That partnership was at all material times managing agent of defendant No. 6, "the India United Mills Ltd. " The question that is raised in this suit relates to the change that occurred in the constitution of defendant No. 5's firm by reason of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and the application that was made is illegal, and that ( ii ) the extension of time given relates to an intended application that must be made by the partners for approval of the change in the firm by the Central Government. The defendants' case is that until such approval is accorded by the Central Government on an application by all partners the time as extended by the two orders mentioned above is of no consequence. The court should, having regard to the absence of an application for approval to be accorded by the Central Government to the change that had taken place, come to a finding that Messrs, Agarwal and Co. have ceased to act as managing agent of defendant No. 6 company upon expiry of February 15, 1960. It is in connection with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds "in that behalf" refer to the provision relating to ceasing to act and must mean that the further time allowed should be time fixed for the purpose of ceasing to act as managing agent. Consequently, the managing agent's firm, it is provided, shall cease to act either (1) upon expiry of six months from the date of the change in the constitution of the firm, or (2) expiry of further time in excess of that period of six months as allowed by the Central Government for that very purpose. Again the words and phrases "on the expiry of six months", "unless" and "such expiry" in the context in which they appear in the section clearly indicate that the approval to be accorded by the Central Government to the change in the constitution so that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to act as managing agents". The scheme of the Act is that in respect of all the managing agents reappointments and/or fresh appointments must be made in accordance with the provisions of section 326 and the scheme as contained in sections 327 to 332. The whole of the scheme makes it abundantly clear that the provisions in the last part of sub-section ( i ) of section 346 relating to the grant of approval of the Central Government to the change in the constitution of a firm of managing agent is a matter which must take place before the expiry of the period of time which is two-fold, viz., six months as mentioned in the first part and otherwise within the further time allowed as already discussed above. Having regard to the true effect an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. In the first instance it appears to me that if any order of extension is made under section 346 and is to be challenged in a court of law the challenge can only be on the grounds of want and absence of jurisdiction. The reason for this is that the question of extension of time is obviously to be decided by none other than the Central Government. If the executive authority acts with jurisdiction as to a matter in which it has jurisdiction it is not for a court of law subsequently to investigate into the illegality or irregularity of previous proceedings in which the executive authority acts. In this case it must be admitted that the Central Government is vested with power and jurisdiction to extend time. The Central Government has in its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business. An application under section 346 for extension of time with intent that ultimately an application may be made for approval and accord by the Central Government to the change in the constitution of a firm is merely an application towards enforcement of his rights by a partner. I do not see how the provisions of these two sections affect such a right of a partner. In this connection it is relevant to point out that the application for extension of time was made on behalf of defendants Nos. 3 and 4 and was made to support the rights of the plaintiffs in this suit. The partners were obviously divided in two groups, defendants Nos. 1 and 2 forming one group while defendants Nos. 3 and 4 and plaintiff No. 1 forming the other. There was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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