9911796707
TMI Blog1975 (4) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT Gupta, J. The appellants question the propriety of an order under section 195 of the Indian Companies Act, 1913, made by the District Judge, Jalgaon, on November 22, 1967, summoning the appellants before him for the purpose of examining them concerning the trade, dealings, affairs and property of the respondent-company, the Gendalal Mills Ltd. (in liquidation), Jalgaon. The winding-up of the company had been ordered by that court on November 3, 1954. The relevant facts are these: On December 31, 1953, the former management of the company executed in favour of the appellants and several other persons a debenture trust deed for rupees fifteen lakhs ; the immovable property of the company and its fixtures including machinery were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the said allegations and the facts summarized above, the District Judge, Jalgaon, made the impugned order under section 195(1) on the view that the appellants were persons capable of giving information concerning the trade, dealings, affairs and the property of the company. The appeal taken against this order was dismissed summarily by a learned single judge of the Bombay High Court. The Letters Patent Appeal preferred from the decision of the learned single judge was also dismissed summarily but with certain observations. Referring to the contention raised on behalf of the appellants that the debenture trust deed could not be challenged by the liquidators at this stage, the learned judges observed that it was not clear from the trial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the possession of the receiver (opponent No. 1) on behalf of the debenture trustees, the alleged sales of properties of the. company by the opponents and other trustees, the sale prices thereof, their utilisation, etc., is collected, it is well-nigh impossible to proceed with this winding up proceeding in this court in the interest of other creditors of the company whose debts are to the tune of rupees twenty-six lakhs." Under section 195 the court may, after it has made a winding-up order, summon before it persons whom it thinks capable of giving such information. It cannot be said, in the circumstances outlined above, that the discretion was arbitrarily or capriciously exercised. On behalf of the appellants a prayer was made that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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