NEW CENTRAL JUTE MILLS CO. LTD. Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) The circumstances under which there was an order, made on April 11, 1963, for investigation into the affairs of the Petitioner company, under Sec. 237 of the Companies Act 1956, a further order under Sec. 209(4) of the Act, made on September 6, 1963, for inspection of the books and accounts of the said company and the circumstances under which the completion of the investigation was delayed and, therefore, extended from time to time and reason why the personnel of the inspectorate was changed have all been dealt with in my judgment in New Central Jute Mills Co. Ltd. v/s. Deputy Secretary : 70 C.W.N. 280, and I need not recount the details. By the above judgment, I upheld the action taken against the Petitioner company but criticised the manner in which the investigation was being carried on in the following language:

(2.) In this Rule, I am concerned with the validity of the action taken in seizing the books and documents of the Petitioner company in circumstances hereinafter related.

(3.) Sec. 240A of the Companies Act, dealing with seizure of documents by inspector, is couched in the following language: