MAHESH CHANDRA GOYAL Vs. DHADWAL OILS (P) LTD.

JUDGEMENT

(1.) Mahesh Chandra Goyal who had moved this court by filing an application under section 439 of the Companies Act, 1956, for passing an order with a view to wind up the company by the name of Messers Dhadwal Oils (P) Ltd. and on whose application this court passed an order for taking steps with a view to wind up the company in question has moved this court again. He has made a prayer that he be permitted to withdraw the aforementioned application filed by him. In a nutshell, he wants that the order passed by this court on 24 Nov., 1995, be recalled. It is further submitted that the aforementioned application has been preferred within three months of the order passed by this court. He further submits that there is no opposition to the prayer made by him. Even the counsel who is appearing for the Madhya Pradesh Financial Corporation is not insisting that the company should go into liquidation. It is submitted that inherent powers can be exercised by this court and order dated 24 Nov., 1995, can be recalled.

(2.) The question as to whether Company Court can exercise inherent powers to recall its earlier order has been considered by a Division Bench of Delhi High Court in the case reported as Jainsons Exports India Vs. Binatone Electronics Ltd. and another, (1995) 4 Comp LJ 500 (Del) . In the above case, the Company Judge has come to the conclusion that he had the requisite jurisdiction to recall an order passed under the Companies Act. An appeal was preferred against that judgment. The Division Bench observed that the view taken by the Company Judge holding that he had inherent powers to recall its earlier order is a view to which no exception can be taken. Following the aforementioned decision, this petition is allowed. The order dated 24 Nov., 1995, is recalled. The net result would be that the winding up proceedings which were set in motion by the aforementioned order would come to a halt.

(3.) This petition is allowed in the manner indicated above.