L N SHARMA Vs. M J MARDIA

JUDGEMENT

(1.) THESE are two appeals, one No. 34 of 1957 by Sri L. N. Sharma, Manager of the Rajasthan Agriculture Live Stock & General Insurance Company. Limited, Jaipur and the other No. 35 of 1957 by Shah Kistoormal, Director of the said company against an order of the learned District Judge Jaipur City acting as a court under the Indian Companies Act in the matter of winding up in the Rajasthan Agriculture Live Stock and General Insurance Company dated 3rd May, 1957 by which he imposed a fine of Rs. 50/- per day on each of the appellants till statement of affairs of the company were filed by them.

(2.) THESE two cases came up for hearing before one of us sitting as a Single Judge and have been referred to a Division Bench as an important point was involved in them. The point for determination is whether the court in the matter of winding up proceedings of a company had jurisdiction to impose fine under sec 454 (5) of the Indian Companies Act of 1956. Though the lower court has purported to act under the Indian Companies Act of 1956, this case as it arose before the new Companies Act came into force is governed by the Indian Companies Act of 1913 as amended by the Act of 1956. The order of the lower court therefore though it purports to be one u/s 454 should be construed to be one under sec. 77 (A) of the Indian Companies Act of 1913.