Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Company Law |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Company Law - Sale - Confirmed by Company Judge - Set aside by Division Bench - Administrative and judicial orders - Distinction - Discretion exercised by company Judge - Interference on ground that certain factors were not considered by him - Letters Patent Appeal against order of Company Judge - Whether maintainable - Clause 15 of Letters Patent of Calcutta High Court - Indian Companies Act, 1913 (7 of 1913), s.202. Luxmi Spinning and Weaving Mills Ltd. was ordered to be wound up compulsorily by an order of the High Court of Calcutta on a petition of the first respondent, Shankar Lal Poddar. Before che winding up order, the appellants instituted a mortgage suit against the said company and Joint Receivers were appointed by the High Court. Later on, Joint Liquidators were appointed in the winding up proceedings. The Joint Liquidators applied for directions regarding the sale of the assets and properties of the company and the Court sanctioned the same. ,-rne sale was held after complying with the requirements of law with regard to advertisement. etc. The highest bid of Nandlal Agarwalla was for Rs. 3,37,000/- and the bid of the appellant firm was Rs.3,35,000/-. The bid of Nandlal was accepted and he was directed to pay immediately 25% of the bid money. As he stated that he had not brought cash, he was allowed to go and bring the same. As he did not turn up inspite of waiting for him for some time. the appellant firm was asked to stand by their previous bid for Rs. 3,35,000/-but they refused to do so. The property was then put up for sale once again and the highest bid of the appellant firm of Bansidhar Shankarlal for Rs. 2,25,000/- was accepted. The sale was confirmed by the Company Judge. The first respondent filed an appeal against the order confirming the sale and his appeal was at lowed by a Division Bench of the Calcutta High Court. The liquidators were ordered to re-sell the property after due adverertisement. The appellants came to this Court by special leave against the decision of the Division Bench. The questions for consideration before this Court were : (1) Whether the order of the Company Judge confirming the sale was merely an administrative order passed in the course of the administration of the assets of the company under liquidation, and therefore not a judicial order subject to appeal, (2) whether on a proper construction of s. 202 of the Indian Companies Act it was a condition fort he availability of an appeal that the order should be openĀ· to appeal under cl.-15 of the Letters Patent of the Calcutta High Court and if the above were answered in the affirmative whether independently of s.-202, the - order of the Company Judge in this case amounted to Judgment within cl. 15 of the Letters Patent, and (3) whether the appellate court acted improperly in interfering with the order of the Company Judge. |
Judge | Hon'ble Mr. Justice N. Rajagopala Ayyangar |
Neutral Citation | 1963 INSC 14 |
Petitioner | SHANKARLAL AGGARWAL AND ORS. |
Respondent | SHANKARLAL PODDAR AND ORS. |
SCR | [1964] 1 S.C.R. 717 |
Judgement Date | 1963-01-24 |
Case Number | 214 |
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