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TMI Blog1970 (12) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... of a notice of the summons to the petitioner on whose petition the order for winding up was made. It is implicit that if the directions which have to be given by the court would affect any person prejudicially he must be served with a notice of the summons under the general rule of natural justice and that no order should be made affecting the rights of a party without affording a proper opportunity to it to represent its case. The High Court was thus clearly in error in not entertaining and deciding the appeal preferred by the appellant who was the owner of the land in which leasehold rights said to have been created by her in favour of the company in liquidation were sought to be sold. Appeal allowed. - 1104 OF 1970 - - - Dated:- 16-12- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a report under section 457 of the Companies Act, 1956, to obtain the necessary orders for sale. On July 21, 1969, the company judge without hearing any one or issuing notice to the appellant ordered that the leasehold rights and the structures be auctioned as proposed by the official liquidator. On October 3, 1969, the appellant's attorney sent a letter to the official liquidator stating that the licence granted to the company under an agreement dated November 5, 1960, stood revoked and called upon him to deliver possession of the land and also pay compensation amounting to, Rs. 10 lakhs. On February 9, 1970, the official liquidator sent a reply claiming that the company was entitled to a lease for 20 years under the agreement. On March 14, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject to the same conditions under which, appeals lie from any order or decision of the court in cases within its ordinary jurisdiction. There can be no manner of doubt that an appeal was competent against the order made by the company judge on July 21, 1969, in view of the terms of section 483. The only question is whether because the official liquidator failed to discharge his duties properly by having a notice issued to the appellant, whose rights were directly affected by the order proposed to be made, the appellant was debarred from filing the appeal. In our opinion apart from rule 139 to which reference has been made by the High Court the official liquidator as well as the learned company judge were bound by the rules of natural justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order for winding up was made. It is implicit that if the directions which have to be given by the court would affect any person prejudicially he must be served with a notice of the summons under the general rule of natural justice and that no order should be made affecting the rights of a party without affording a proper opportunity to it to represent its case. The High Court was thus clearly in error in not entertaining and deciding the appeal preferred by the appellant who was the owner of the land in which leasehold rights said to have been created by her in favour of the company in liquidation were sought to be sold. The appeal is allowed and the order of the High Court is set aside. The case is remanded to the High Court for disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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