Decided on March 25,1957



Chopra, J. - (1.) The respondent has applied for the interim order dated 12th March, 1957, to be vacated or suitably modified. Mr. Dua, in the first place, contends that this court has no power to make any such interim order in a petition under section 186 of the Companies Act (1 of 1956). It is submitted that under section 186(1) the court may give only such ancillary or consequential directions as may be deemed expedient in relation to the calling, holding and conducting of the meetings and for no other purpose. In my opinion, the contention has no force. The section simply clarifies the nature of directions that may be given for calling, holding or conducting the meeting and thus for the disposal of the petition itself. It does in no way abridge or limit the general or inherent powers of the court to make such interlocutory orders as may be deemed necessary in order to prevent the ends of justice from being defeated or the petition itself being made infructuous. In the petition, it was alleged that the managing agent of the company, for the reasons stated, ought to be deemed to have vacated his office and that there was no properly constituted board to carry on the business of the company or to look after its affairs. It was, therefore, prayed that till the meeting was held and till such time as the newly elected board started functioning, the persons illegally in charge of the company be restrained from disposing of the assets of the company. If the allegations were true, it was incumbent on the court to issue directions for the proper management of the company during the pendency of the proceedings. Sec. 141 of the Code of Civil Procedure lays down that the procedure provided in the Code in regard to suits shall be followed, as far as it can be made applicable, in all proceedings in any court of civil jurisdiction. Obviously the section would be applicable to such like proceedings under the Companies Act. Sec. 94 of the Code of Civil Procedure sums up the general powers of the courts in regard to the various kinds of interlocutory orders that may be made with a view to do substantial justice to the parties to a proceeding or to prevent the ends of justice being defeated. Sec. 151 of the Code of Civil Procedure recognises the inherent powers which the judicial courts always have to make such orders as may be necessary for the ends of justice or to prevent abuse of the process of the court.
(2.) It is next submitted that the company had entered into agreements with the Punjab Government and the Railway Administration for the supply of a large number of electric meters within a specified time and that the meters bad already been imported and they were to be paid for. The company stands to suffer a great loss if the agreements are not carried out and the meters supplied within the specified period.
(3.) In view of the facts stated in the application, I think the interim order deserves to be modified to the extent that the company be allowed to complete the agreements that have already been entered into and make payments in respect thereof. I order accordingly. Order accordingly.;

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