SUDHIR CHANDRA MANNA Vs. SRISH CHANDRA DHARA

JUDGEMENT

(1.) TWO cardinal points arise for determination on this application for sanctioning a scheme under sec. 391 of the Companies Act. One is, whether a Government company, or a sterling Company incorporated in the united Kingdom, can at all apply to a high Court in India for sanction of a compromise or arrangement proposed between such a company and its creditors or its members, and whether such a High Court has the jurisdiction or power to entertain such an application either to sanction or refuse the scheme. The other is, can the workers in such an application be heard or have a right in the Court dealing with an application under s. 391 of the Companies Act?

(2.) THE remaining question on this application is concerned with the merits and demerits of the scheme proposed under s. 391 of the Companies Act. It will be appropriate to set out the main facts relevant for the purpose of the determination of the points involved in this application. This is essential because there are numerous papers, petitions and affidavits and it is necessary that the main facts and features of the case should be clearly under focus.

(3.) THE applicant is the Rivers Steam navigation Company Limited. This company was incorporated in England on or about July 10, 1914 as a company limited by shares. The authorised capital of the company is sterling 7,28,325 divided into 1,00,000, 6% non-accumulative Preference shares of sterling 1 each and 6,28,325 Equity shares of staling 1 each. The 1. 00,000 Preference shares were issued and are all fully paid up. But out of the said 7,28,325 equity Shares issued, 1,57,985 are fully paid up and the balance 4,70,340 Equity shares are paid up to the extent of 15 shillings each. The total amount of capital paid up or credited as paid up on december 31, 1965 is sterling 6,10,740.