The managing director of a company cannot file or continue an appeal after the company has been ordered to be wound up and the official liquidator has been put in charge.

JUDGMENT :

S.K. Das J.

1. This is an appeal by special leave on behalf of the Sirmur Chemical and General Industries Ltd. through Harcharan Dass managing director and agent. A preliminary objection has been taken on behalf of the respondent, the Union of India, that the appellant company having been ordered to be wound up by an order of a court of competent jurisdiction and the official liquidator being in charge of the same, the appeal by the managing director and agent was not properly filed and is not maintainable, the managing director or agent not being competent to file or continue the appeal after the liquidator in a winding up by the court had taken charge of the company.

2. After hearing parties on this preliminary objection we have come to the conclusion that the preliminary objection should succeed. We would, therefore, state the facts so far as they relate to the preliminary objection, and give reasons for the conclusion at which we have arrived. On June 30, 1945, the erstwhile Darbar of Sirmur State in Himachal Pradesh granted a monopoly in favour of Harcharan Dass in respect or the cultivation and collection of medicinal herbs within Sirmur State to enable him to manufacture drugs therefrom and dispose of the same either within the State or by export outside the State. The monopoly right was to hold good for a period of twenty years subject to the condition that Harcharan Dass was required to float a private limited company with a capital of Rs. 10 lakhs after obtaining the necessary permission from the Examiner of Capital Issues of the then Government of India. On September 18, 1945, a formal agreement was entered into by the Sirmur Darbar on one side and Harcharan Dass on the other. Paragraph 8 of the agreement reserved to the Darbar the right to revoke the monopoly rights on breach of certain terms and conditions and paragraph 17 provided for a reference to arbitration in case of a dispute. On November 23, 1945, a company styled the Sirmur Chemical and General Industries Ltd. came into existence and was registered as such by the Registrar under the Indian Companies Act, 1913 (VII of 1913) (hereinafter referred to as the 1913 Act) at Nahan. Harcharan Dass transferred all his rights and interests to the said company. The company started its work in April, 1946. On April 15, 1948, the Sirmur State merged in the Indian Union and on April 22, 1948, the Secretary Sirmur Government, wrote to the managing agent of the company that the licence granted on June 30, 1945, had been revoked under paragraph 8 of the agreement on account of various defaults alleged to have been committed by the company. Some correspondence between the company and the representatives of Government then ensued which proved abortive. The company then sought to refer its dispute with the Government to arbitration under paragraph 17 of the agreement and a notice to that effect was served on the Deputy Chief Commissioner Himachal Pradesh. The Deputy Chief Commissioner refused to take part in the arbitration. The company then appointed one Lala Hari Chand Bhatia of Amritsar as the sole arbitrator. This gentleman proceeded ex parte and on April 26, 1949, made an award which in effect give the company Rs. 92,000 plus Rs. 800 as damages. On October 25, 1949, the arbitrator presented a petition under section 14 of the Indian Arbitration Act, 1940 (X of 1940), to the Court of the District Judge, Sirmur. The original award was filed along with the petition. Upon notice issued to the Dominion of India and the Chief Commissioner, Himachal Pradesh, certain objections were filed. By his judgment dated July 19, 1951, the District Judge, Sirmur set aside the award on various grounds which need not be stated here. The company then preferred an appeal to the Court of the Judicial Commissioner, Himachal Pradesh, on October 25, 1951. But some time before that, the Lieutenant Governor, Himachal Pradesh, made an application under section 162 of the 1913 Act, praying th