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TMI Blog1971 (11) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the official liquidator, has raised a preliminary objection. He says that the appeals are barred by limitation. The reason advanced by him is that after the winding-up order, the subsequent proceedings were transferred to the Additional District Judge, Delhi, under the provisions of section 435 of the Companies Act. This section makes the court of Additional District Judge as "the court" with the meaning of the Companies Act and so the orders passed by the Additional District Judge shall be deemed to be the orders passed by a single judge of this court. Under article 117 of the Limitation Act, 1963, the period of limitation for filing appeals from an order of a High Court to the same court is thirty days. Admittedly, the appeals were filed beyond that period and so should be dismissed. In order to appreciate the contentions of the learned counsel, it is convenient to reproduce the relevant sections of the Companies Act, 1936. Section 2 (11)( a ) defines "the court" in the following terms: " 'the Court' means, ( a )with respect to any matter relating to a company (other than any offence against this Act), the Court having jurisdiction under this Act with respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt. These proceedings may be transferred by one High Court to another High Court with the latter's consent. These may also be transferred to a District Court not subordinate to the High Court ordering the winding up of the company but subordinate to another High Court with the consent of the latter. In the case of such transfer, the transferee court is to be deemed to be the court having jurisdiction under the Act in terms of section 10. The transferee District Court has also been given all the jurisdiction and powers of a High Court. What Mr. Sawhney contends is that since the District Court has been given all the juridiction and powers of a High Court under the Act, the orders passed by the District Court will have the same effect as the orders passed by a single judge of this court. I am afraid I cannot agree to this proposition. One of the objects of this section seems to be to relieve the High Court of the detailed work of the winding-up of a company and leave it to a District Court if the High Court decides to do so. While giving the power to the High Court to transfer the matter to a District Court, it was necessary that the jurisdiction and powers of the District Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the event of a company being wound up. Section 427 relates to the obligations of directors, managing agents and managers whose liability is unlimited. Section 428 defines the term "contributory" in the following words: "The term 'contributory' means every person liable to contribute to the assets of a company in the event of its being wound up, and includes the holder of any shares which are fully paid up; and for the purposes of all proceedings for determining, and all proceedings prior to the final determination of, the persons who are to be deemed contributories, includes any person alleged to be a contributory," This definition specifically includes the holder of any shares which are fully paid up. The result is that under the definition of the term "contributory" not only those persons, who are liable to contribute to the assets of a company in the event of its being wound up, but also the persons holding fully paid up shares, shall fall. In the instant case, it is not denied that the appellant holds fully paid up shares. Simply because the official liquidator has not shown him as a contributory in the list of contributories prepared by him, does not mean that he ceases to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is force in the contention of Mr. Sawhney and I, would not thus like to allow the appellant to have the benefit of the notice served on the liquidator six years ago for the purpose of further enquiry by the court. This appeal is, therefore, dismissed. F.A.O.No. 82 of 1967. The appellant made an application to the court for inspection of the account books of the liquidator maintained by him under section 461(2) of the Companies Act. It was contested on the ground that it was not maintainable. Section 461 is in the following terms: "461. (1) The liquidator shall keep, in the manner prescribed; proper books in which he shall cause entries or minutes to be made of proceedings at meetings and of such other matters as may be prescribed. (2) Any creditor or contributory may, subject to the control of the Court, inspect any such books, personally or by his agent." This section shows that the liquidator is required to keep proper books in which he shall cause entries or minutes to be made of proceedings at meetings held and of such other matters as may be prescribed. It is only these books which a contributory has been given the right to inspect. Mr. Rameshwar Dial conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various other places which were detailed in the application. On March 20, 1965, the court ordered the delivery of 1,000 cylinders back to Murarilal Bhargava. The appellant thus requested for the return of the cylinders belonging to him. This application was contested by the official liquidator on various grounds. The then learned Additional District Judge, dealing with the case, ordered that evidence of the parties be recorded. While the evidence was going on, Shri M. I. Jain, who had succeeded Shri C. G. Suri, heard the arguments and dismissed the application of the appellant without completing the evidence. The learned Additional District Judge held that the appellant was not entitled to unilaterally cancel the contract without the consent of the opposite party and so was not entitled to the return of the cylinders. It is not disputed before me that 1,000 cylinders contributed by Murarilal Bhargva were ordered to be returned to him as alleged by the appellant. It is, however, contended by the respondent that these were so ordered because the appellant did not raise any objection. I cannot appreciate this submission. After the company has gone into liquidation, the assets v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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