9911796707
TMI Blog1967 (9) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... ator for action under that section against 23 persons including several directors of the company under liquidation, viz ., the Gaya Sugar Mills Ltd. He alleged that, while in charge of the assets of the company, they committed various acts of misfeasance, malfeasance, non-feasance, breach of trust, etc., and, that, consequently, action should be taken against them under section 235. It is, however, conceded by counsel for both sides that, against some of the persons named by the official liquidator, the company judge did not take further action, he continued the proceeding under section 235 only against some of the directors; but, at the preliminary stage of the proceeding, counsel for the liquidator and for Lakshmipat Singhania and Brid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties". According to him, therefore, where only a tentative decision is taken to drop the proceeding against two of the directors at that stage, no order finally affecting the rights and liabilities of the parties has been passed by the company judge, and that consequently no appeal lay. I am inclined to accept this contention. There can be no doubt, in view of the aforesaid judgment of the Supreme Court, that it is not every order or decision of a company judge that is appealable under section 202. Those orders which do not affect the rights and liabilities of the parties will not be appealable. If a company judge, at the preliminary stage of the hearing of an application under section 235 against several persons, considers that, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he conduct of the directors arises only if there is a prima facie case. This is clear from the words "it appears that" occurring in the first part. If, however, he considers that there is a prima facie case, he may further examine the conduct of the directors, and finally pass orders against them, as indicated in the second part of the subsection. An order passed either rejecting the application of the liquidator finally or allowing it and directing the directors concerned to recoup the loss to the company would undoubtedly be a final order affecting the rights and liabilities of the parties and, as such, appealable. But, where, in the initial stage of a proceeding under section 235, the company judge merely says that, at that stage, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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