FIRE AND GENERAL INSURANCE CO OF INDIA LTD Vs. STATE
HIGH COURT OF CALCUTTA
FIRE AND GENERAL INSURANCE CO OF INDIA LTD
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(1.) [an appeal No. 129 of 1961 against the above judgment was dismissed on the ground of non-maintainability. ] these matters came up before me for administrative directions on the 25th November last. Upon going through the report of the Assistant Registrar (Company) I directed that they should appear in my list on the 16th December, 1960 to give an opportunity to the Central Government and the Official Liquidator attached to this Court to make their submissions on the points raised. On the 16th December 1960, Mr. R. Chaudhuri appeared for the Central Government and the Official Liquidator and wanted to contend that the relevant rules of the Supreme Court were ultra vires the Companies Act, 1956. I thereupon requested Mr. Gouri Mitter to appeal is amicus curiae. On the 20th January, 1961 the matters were heard and Mr. Chaudhuri made his submissions I then directed the Assistant Registrar (Company) to write, to the Registrar of the Supreme Court informing him of Mr. Chaudhuri's contentions. The Assistant Registrar has complied with my directions but, I am told, there is no response from the Registrar of the Supreme Court. I would at the outset express my deep gratitude to Mr. Gouri Mitter and his learned junior, Mr. Panja for the assistance they have given me to determine the questions involved.
(2.) THE facts are that every Official Liquidator, upon his appointment, as such, files statements of accounts, every six months during the continuance of his acting as such liquidator. Upon the filing of each of these statements, the Registrar of this Court issues a notice to the Official Liquidator to call on him to enable him to nominate an auditor from the panel of auditors maintained by this Court, to fix his remuneration and to make over the statement to the auditor concerned. The liquidator instead of attending personally writes to the Registrar suggesting the remuneration of the auditor. The Registrar thereafter appoints the auditor, fixes his remuneration upon reference to the relevant accounts and rules of this Court and issues a letter of appointment to the auditor and a copy thereof is sent to the liquidator. The relevant rules of the Companies (Court) Rules, 1959 are, as fallows :-Rule 301:-As soon as the Accounts are filed, the Registrar shall forward to the auditor one copy thereof for purposes of audit with a requisition in Form No. 147 requesting that the accounts may be audited and a certificate of audit issued to the Court not later than 2 months from the date of receipt of the copy of the account. Rule 302:-The accounts shall be audited by one or more chartered accountants appointed by the Court or if the Court so directs by the Examiner of Local Fund Accounts of the State concerned. The audit shall be a complete check of the accounts of the Official Liquidator and of each of the Companies in liquidation in his charge. The Official Liquidator shall produce before the auditor all his books and vouchers for the purpose of audit, and shall give the auditor all such explanations as may be required of him in respect of the accounts. Rule 303:-After the audit of each of the accounts of the Official liquidator filed in Court, the auditor shall forward to the Registrar a certificate of audit relating to the account with his observations and comments, if any, on the account together with a copy thereof, and shall forward another copy to the Official Liquidator. The Registrar shall file the original certificate with the records and forward the copy to the Registrar of Companies together with a copy of the accounts to which it relates. Rule 304:- (1) Audit fees according to the following scale on the gross amount brought to credit, including the produce of calls on contributories, interest on investments and rents from properties, but after deducting (a) the amount spent out of the money received in carrying on the business of the company and (b) the amounts paid by the Official Liquidator to secured creditors (other than debenture holders), shall be paid to the auditor and debited to the account of the liquidation to which the audit relates:-
(3.) ON the amount brought to credit including the produce of calls on contributories, interest on investments and rents from properties but after deducting (a) the amount spent out of the money received in carrying on the business of the company, and (b) amounts paid by the Official Liquidator to secured creditors (other than debenture holders. . . . . . . . percent on. On disbursements other than payments to secured creditors not being debenture holders. . . . . . . . . . per cent. (2) Where the audit is by the Examiner of Local Funds Accounts, audit fees calculated on the above scale shall be paid into the Reserve Bank of India to the credit of the State Government concerned. In the above matters, the Official Liquidator has suggested remuneration of the Auditor upon calculation not in accordance with Rule 304.;
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