MINOO H MODY Vs. HEMANT D VAKIL

JUDGEMENT

(1.) THIS is a reference to consider the following three questions pertaining to the practice and procedure concering an Appeal under section 10-F of the Companies Act I of 1956 (the Act):-

(2.) BASIC factual background is this; some shareholders of M/s. RDI Print and Publishing Private Limited (having its registered office in Bombay) filed a petition before the Company Law Board (C. L. B.) under sections 397 and 398 of the Act. Aggrieved by the adverse order dated 21-4-1993 passed the - reupon, Mr. Minoo H. Mody ( the Original Respondent No. 2) has filed an Appeal in this Court under section 10-F of the Act. It was labelled and presented in the form of a petition and was registered as Company Petition No. 242 of 1993 on the Original Side of this Court as per the prevailing practice. It was heard by the learned Single Judge who came to prima facie conclusions that (i) an Appeal under section 10-F cannot be in the form of a petition to the Company Court and will have to be in the form of a Memorandum of Appeal formulating questions of law arising out of the order impugned, and (ii) it cannot be filed and entertained on the Original Side of this Court and will have to be filed and entertained only on the Appellate Side, till appropriate rules pertaining to the practice and procedure concerning such Appeal are made by the appropriate authority in this behalf. In view of the importance of the questions, the learned Single Judge, by Order dated 17-6-1993, suggested to the Honourable Chief Justice to make a reference to a Division Bench for consideration of the questions and this is how the matter is placed before us.

(3.) SECTION 10-F has been brought on the statute book by the Companies (Amendment) Act, 1988 with effect from 31-5-1991. Before this amendment, the High Court was empowered to entertain the petitions under sections 397 and 398 of the Act. By this amendment, this original jurisdiction has been transferred to the C. L. B. Having transferred the jurisdiction to the C. L. B, an Appeal to the High Court has been provided on any question of law arising out of such an order.