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TMI Blog1962 (3) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... aran Dass having ceased to be the managing director or managing agent was not competent to file the appeal or continue it on behalf of the company. The argument that there is no automatic cesser of the power of Harcharan Dass as agent or that the appeal is a continuation of the suit is not available to Harcharan Dass in view of the clear provisions in section 334(e) and section 457 of the Companies Act, 1956. We, therefore, hold that the preliminary objection must succeed and the appeal must be held to be incompetent, hence dismissed. - 12 OF 1960 - - - Dated:- 6-3-1962 - S. K. DAS, M. HIDAYATULLAH AND J. C. SHAH, JJ. Veda Yyasa, S.K. Kapur and K.K. Jain for the Appellant. K.N. Rajagopal Sasiri Sukumar Ghose and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with a capital of Rs. 10 lakhs after obtaining the necessary permission from the Examiner of Capital Issues of the then Government of India. On September 18, 1945, a formal agreement was entered into by the Sirmur Darbar on one side and Harcharan Dass on the other. Paragraph 8 of the agreement reserved to the Darbar the right to revoke the monopoly rights on breach of certain terms and conditions and paragraph 17 provided for a reference to arbitration in case of a dispute. On November 23,1945, a company styled the Sirmur Chemical and General Industries Ltd. came into existence and was registered as such by the Registrar under the Indian Companies Act, 1913 (VII of 1913) (hereinafter referred to as the 1913 Act) at Nahan. Harcharan Dass tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us grounds which need not be stated here. The company then preferred an appeal to the Court of the Judicial Commissioner, Himachal Pradesh, on October 25, 1951. But some time before that, the Lieutenant Governor, Himachal Pradesh, made an application under section 162 of the 1913 Act, praying that the company be wound up and that a liquidator be appointed to take charge of the company. This application was made in the Court of the Judicial Commissioner, Himachal Pradesh, and was presented on July 12, 1951. This application was finally heard by the Judicial Commissioner after the taking of evidence and by his judgment and order dated December 31, 1957, the learned Judicial Commissioner directed that the company be wound up and the official l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n has been passed by the company for voluntary winding up, the winding up of the company shall be deemed to have commenced at the time of the resolution; in any other case the winding up of a company by the court shall be deemed to commence at the time of the presentation of the petition for the winding up. The corresponding provision in the 1913 Act is section 168. In the case before us the petition for winding up was presented on July 12, 1951. Therefore, as from that date the managing agent, namely, Harcharan Dass, shall be deemed to have vacated his office as managing agent. Sections 444 to 447 of the Companies Act, 1956, give the consequences of a winding up order. Under sub-section (3) of section 445 a winding up order shall be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that on an order of winding up by the court any person other than the liquidator shall have the power to institute or defend any suit, prosecution or other legal proceeding, etc. Harcharan Dass having ceased to be the managing director or managing agent was not competent to file the appeal or continue it on behalf of the company. The argument that there is no automatic cesser of the power of Harcharan Dass as agent or that the appeal is a continuation of the suit is not available to Harcharan Dass in view of the clear provisions in section 334( e ) and section 457 of the Companies Act, 1956. We, therefore, hold that the preliminary objection must succeed and the appeal must be held to be incompetent. The appeal is accordingly dismissed w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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