- (1.) These are two applications for quashing two proceedings pending against the Petitioners in the court of the Chief Presidency Magistrate, Calcutta, under Section 13 of the Capital Issues (Continuance of Control) Act, 1947 (Act XXIX of 1947).
(2.) The Capital Issues (Continuance of Control) Act, 1947, was preceded by an Ordinance (being Ordinance v. of 1947) issued under Section 72 of the Ninth Schedule to the Government of India Act, 1935. This Ordinance incorporated the provisions of Rule 94A of the Defence of India Rules. On May 17, 1943, a new Rule 94A entitled Control of Capital Issues was introduced in the Defence of India Rules. There were several amendments to that Rule during the year 1943 and thereafter and on June 9, 1944, the Rule as so amended read as follows: Rule 94A. (2)(a) No company, whether incorporated in British India or not, shall except with the consent of the Central Government- (i) make an issue of capital in British India; (ii) make in British India any public offer of securities for sale; (iii) renew or postpone the date of maturity or repayment of any security maturing for payment in British India. (b) The Central Government may on application make an order according recognition to an issue of capital made or to be made outside British India by a company not incorporated in British India. (3) The Central Government may qualify any consent or recognition accorded by it under Sub-rule (2) with such conditions whether for immediate or future fulfilment, as it may think fit to impose; and where a company acts in pursuance of such consent or recognition, it shall comply with the terms of any condition so imposed. (4) No company incorporated in British India shall, except with the consent of the Central Government, make an issue of capital outside British India.
(3.) It is not necessary to set out the other provisions contained in Rule 94A for the limited purpose of these revision petitions.;