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1958 Supreme(Bom) 77

M.C.CHAGLA, S.T.DESAI
Bilasrai Joharmal and others – Appellant
Versus
Akola Electric Supply Co. , Private Ltd – Respondent


This is an appeal against an order of Mr. Justice Coyajee dismissing a petition under the Companies Act. The petition was presented for the winding up of the first respondent company and in the alternative a prayer was made for appropriate orders under Sections 397, 398 and 402. At the hearing of the petition the prayer for winding up was given up; and substantially the controversy before Mr. Justice Coyajee was whether any directions should be issued under sections 397 and 398 of the Companies Act.

(2) A preliminary objection has been taken by Mr. Bhabha and that is that Mr. Justice Coyajee was in error in hearing the petition without notice having been given to the Central Government under section 400 of the Companies Act. Section 400 of the Companies Act provides that

"the Court shall give notice of every application made to it under section 397 or 398 to the Central Government, and shall take into consideration the representation, if any, made to it by that Government before passing a final order under that section."

Mr. Bhabha contends that the provisions of section 400 are mandatory and that no order can be passed on a Petition which constitutes an application under section 397





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