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TMI Blog2009 (3) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... er is not in possession of the same. This is probably because the learned Member had decided ultimately not to pass any orders under section 163 either directing the company to give inspection or rejecting the Petitioner’s application for the same. Mr. Sathe stated that the company is in possession of the reconstructed record for the period prior to February 2007 and the original record for the period after February 2007. He stated that the Petitioner may take inspection of the same at any time. The Petitioner is at liberty to do so without prejudice to his rights and contentions in the petition before the Company Law Board.The Appeal is, therefore, allowed. The order and judgment of the Company Law Board is set aside. The matter is remanded to the Company Law Board for a fresh decision. - COMPANY APPEAL NO. 25 OF 2008 IN CLB COMPANY PETITION NO. 7 OF 2008 - - - Dated:- 16-3-2009 - S.J. VAZIFDAR, J. Milind Sathe for the Appellant. Ms. Sanober Nanavati for the Respondent. JUDGMENT 1. The appeal is admitted. With the consent of the parties the appeal is heard finally. 2. This is an appeal under section 10F of the Companies Act against an order and jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny by its letter dated 22-2-2007 alleged that the Petitioner had taken away the records and the registers of the company. The company, therefore, called upon the Petitioner to return all the books of the company. 7. The further correspondence between the parties was to the same effect. It is not necessary to deal with the disputes between the Petitioner and the other shareholders as the petition was filed for the limited purpose of seeking inspection of the records of the company in exercise of the petitioner s rights under section 163 of the Companies Act. 8. In view of the above, the Petitioner filed the above petition for an order directing the company to furnish him the certified copies of all the documents requested for by him under section 163(6) of the Companies Act. 9. After noting the case of both the parties the learned Member came to the conclusion that the record of the company was not in the Petitioner s possession and that the company for reasons best known to it was not giving inspection thereof to the Petitioner falsely contending that the record was with the Petitioner. Having come to this conclusion the judgment, however, does not decide the petition a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order merely advices the parties and the Registrar of Companies to initiate prosecution proceedings against the company for contravention of section 163 of the Act. 11. Even assuming that the Company Law Board has the jurisdiction to so advise the Registrar of Companies, the Company Law Board ought to have decided the application under section 163. Section 163 of the Companies Act reads as under : "163. Place of keeping, and inspection of registers and returns. (1) The register of members commencing from the date of the registration of the company, the index of members, the register and index of debenture-holders, and copies of all annual returns prepared under sections 159 and 160, together with the copies of certificates and documents required to be annexed thereto under sections 160 and 161, shall be kept at the registered office of the company : Provided that such registers, indexes, returns and copies of certificates and documents or any or more of them may, instead of being kept at the registered office of the company, be kept at any other place within the city, town or village in which the registered office is situate, if ( i )such other place has been approve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forthwith be sent to the person requiring it, as the case may be." 12. Section 163 does not confer jurisdiction upon the Company Law Board to advice the Registrar of Companies to initiate prosecution for a contravention of section 163. Nor do sections 621 and 629 confer such power on the Company Law Board. 13. Further even assuming that the Registrar of Companies has the power to issue directions to the company to comply with any requisition under section 163, the judgment of the Company Law Board does not direct the Registrar of Companies to in turn direct the company to furnish the information sought by the Petitioner. This is even assuming that such directions could have been given. Thus whichever way the matter is viewed the application/petition has not been decided. 14. In the circumstances, it is necessary to set aside the order and judgment of the Company Law Board and to remand the matter for a fresh consideration thereof. 15. The judgment of the Company Law Board is also liable to be set aside as it has exercised jurisdiction by advising the Registrar of Companies, Maharashtra to initiate prosecution proceedings against the company for contravention of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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