TMI Blog2000 (7) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... usal of the record shows that petitioner No. 1 was registered as a company in 1920-21 for development of the colony/city near the then town of Malout Mandi (now District Amritsar). Petitioner No. 2 is its elected President. For achieving the objects set out in its memorandum of association, petitioner No. 1 acquired land and developed it into a township having hostels, guest houses, schools, colleges, residential buildings, etc. Later on, some of the buildings were given to the administration for being used as residence of the officers of different categories. After extension of municipal limits of Malout Mandi, the roads, drainage and electric supply were transferred from petitioner No. 1 to the Municipal Committee. In respect of the house ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic interest. In their replication, the petitioners have not only reiterated their plea that the order passed by respondent No. 2 is vitiated by lack of jurisdiction but have also denied the allegation of irregularities levelled by respondents Nos. 1 and 2. We have heard learned counsel for the parties. The main issue which merits consideration by the court is whether respondent No. 2 had the jurisdiction to order an enquiry into the affairs/ working of petitioner No. 1. The petitioners, as already mentioned above, have challenged the order passed by respondent No. 2 on the premise that the memorandum of association/articles of association of petitioner No. 1 does not empower the Deputy Commissioner to get an enquiry conducted into its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s type may have found its acceptability in the by-gone days when the country was ruled by kings and monarchs but cannot be accepted in a system governed by rule of law. The principle that rex is lex has no place in our constitutional set up and no one, howsoever high he may be, can claim to be above the rule of law and no public servant entrusted with certain powers and duties under the law of the land can exercise such power transgressing the limits of statutory authority. In view of the above, we have no hesitation to hold that the order passed by respondent No. 2 for conducting an enquiry into the functioning and affairs of petitioner No. 1 is void ab initio and it is liable to be invalidated. In the result, the writ petition is allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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