N P S N RAMIAH NADAR Vs. N K R AMIRTHARAJ

JUDGEMENT

(1.) THIS is an appeal from the order of Ramaswami J. , in O. P. No. 272 of 1952, directing the Government of India to obtain one or more competent persons and inspectors to investigate into the affairs of the Nadar Press Ltd. Sivakasi and to report thereon for further action to be taken under S. 242 of the Companies Act of 1956, if it appears to the Central Government that such action should be taken thereunder. The substantive application, namely, O. P. No. 272 of 1952, was filed under S. 153-C of the Indian Companies Act, 1913 for obtaining an order appointing an administrator or receiver to take charge of the business, properties and assets of the company, for terminating the service of the managing director and other directors, who were in charge of the affairs of the company and for certain other reliefs on the footing that there was mismanagement of the company by the board of directors and that the affairs of the company were conducted in a manner detrimental to the interests of the company and its shareholders.

(2.) DURING the course of hearing of the petition the learned Judge tenantively came to the conclusion that the materials on record make out an overwhelming prima facie case for ordering investigation into the affairs of the company by the machinery provided under the Indian Companies Act. The learned Judge, therefore, called for a report from the officers appointed by the Central government under the provisions of S. 237 of the Indian Companies Act. Some of the directors of the company, feeling aggrieved by the order directing an investigation, have filed this appeal.

(3.) A preliminary objection to the maintainability of the appeal is taken on behalf of the respondent on the ground that the order of the learned Judge does not amount to a judgment within the meaning of the term in Cl. 15 of the Letters patent.