SATISH CHURN LAW Vs. H K GANGULY
LAWS(SC)-1961-12-29
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on December 05,1961

SATISH CHURN LAW Appellant
VERSUS
H.K.GANGULY Respondents


Cited Judgements :-

PRAVIN SANKALCHAND SHAH VS. D B DALAL OFFICIAL LIQUIDDATOR [LAWS(BOM)-1965-7-5] [REFERRED TO]
OFFICIAL LIQUIDATOR NAGPUR GLASS WORKS LTD VS. IN LIQUIDATION V D P OGALE [LAWS(BOM)-1970-2-33] [REFERRED TO]
ULTRA CHEMICAL INDUSTRIES VS. KISHORE INDUSTRIAL FINE CHEMICAL WORKS [LAWS(BOM)-1972-4-13] [REFERRED TO]
SPARTEK EMERGING OPPORTUNITIES MAURITIUS LTD VS. ARGUS COSMETICS LIMITED [LAWS(MAD)-2002-8-19] [REFERRED TO]
MARIGOLD LEASING (INDIA) LTD. VS. SHASHI BHUSHAN [LAWS(P&H)-2008-12-137] [REFERRED TO]
GILL AND CO. (P.) LTD VS. MADHAV MILLS LTD [LAWS(BOM)-1969-10-14] [REFERRED TO]


JUDGEMENT

Shah, J. - (1.)Ballygunge Real Property and Building Society Ltd.-hereinafter called the Company-was on January 8, 1958, ordered by the High Court of Judicature at Calcutta to be wound up. On January 18, 1960, the Official Liquidator submitted an application accompanied by a signed statement for an order that the appellant be examined under S. 477 of the Indian Companies Act. 1956. This application was granted ex parte by Mr. Justice G. K. Mitter on January 18, 1960, and the appellant was served with the order to attend the Court on March 22, 1960, for the purpose of being examined concerning the affairs of the Company, and to bring with him and produce at the said time and place the following books and papers, mentioned in Schedule B to the order, viz.,
(a) Ballygunge Estate (Private) Ltd. - Cash Books, General Ledger, Journal, Minutes Books from 1939 to 1948, Property Register.

(b) Ballygunge Building Society Private Ltd. - Cash Books, General Ledger, Journal, Minute Books, Property Register.

(c) Ballygunge, Real Property and Building Society Ltd. (In Liquidation) - General Ledger for 1949,
and "all such other books, papers, deeds, writings and other documents in his custody or power in any way relating to affairs of the Company." This order was published in public newspapers. The solicitors of the appellant by letters dated February 29, 1960, and March 10, 1960 called upon the Official Liquidator to furnish them with copies of the petition and the report on the basis of which the order was trade. The Official Liquidator having informed the solicitors of the appellant that the latter were not entitled to a copy of the report of the official liquidator, the appellant applied by a judge's summons for an "order recalling, vacating, setting aside or modifying" the order dated January 18, 1960, and for a direction to the official liquidator requiring him to supply copies of the report of the official liquidator and of the other documents relating to the application, and alternatively for an order granting leave to inspect the court records and proceedings of the application and to take copies thereof. The appellant contended that the order made by Mr. Justice Mitter on January 18, 1960, was obtained by suppression of material facts and that, in any event, the order made without notice to the appellant was vexatious and oppressive and amounted to an abuse of the process of Court. He submitted that he was a Director of the Company between the years 1939 to 1953 and had attended meetings of the Board of Directors of the Company and without reference to the records of the meetings of the Board and particularly without reference to the Minute Books, it was not possible for him to recollect any details as to transactions which might have taken place in the Board's meetings. He stated that he was not concerned with the administration, management or the day to day working of the Company, except to the extent of taking part in the Board's meetings, that he never had in his custody the books referred to in the order and that the official liquidator had never asked for or enquired of him about any documents, that he was not aware of the matters on which information was required by the official liquidator and unless those matters were made known to him, it was not possible for him to answer questions or to give information required of him, that to enable him, to answer questions or supply information, it was necessary for him to know the nature of the enquiry and the charges and to inspect the records and documents of the Company and without the assistance of such records and documents his proposed examination would be highly oppressive and harsh and was likely to prove futile.
(2.)The official liquidator submitted that all the available papers in the books with the liquidator will be made available at the time of the examination of the appellant but he - the official liquidator -was not bound to give information in advance about the nature of the enquiry; to do so, he contended, would defeat the purpose of the enquiry. He also submitted that the appellant had no right to claim inspection or to obtain copies of the statement which accompanied the judge's summons dated January 18, 1960.
(3.)Mr. Justice Law rejected the application filed by the appellant, holding that the order dated January 18, 1960, was final and that he had no power to review, modify, alter or vary the same, that the order merely summoning for examination under S. 477 of the Companies Act did not affect a party's rights, there being no charge, no complaint and no allegation against him. The learned judge observed that it was not necessary for the court in the first instance to determine that the person called upon to furnish information actually possessed that information:if the Court has reasons to think, or if even an allegation is made that a certain person is in possession of information which would be of use in the course of winding up, the Court can call upon him to appear in Court and examine him, and that Rules 243 (1) and 243 (2) of Companies (Court) Rules laid down the same procedure as was laid down in, In re, Gold Company Ltd., (1879) 12 Ch D 77 at p. 82 and different from the procedure which was laid down by R. 195 of the Indian Companies Act. 1913. In the view of the learned Judge the statement of the official liquidator on which the order dated January 18, 1960, was made not being on oath or affirmation was not "legal evidence" and did not form part of the proceedings of the Court and the appellant could not demand facility for inspection of the statement or copy thereof.


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