BALAKRISHNA AYYAR J.

This is a petition by the Vanguard Fire and General Insurance Co. Ltd., for the issue of a writ of prohibition to restrain the first respondent from carrying on any investigation into the affairs of the company in pursuance of an order made under section 33 of the Insurance Act by the Central Government

The relevant facts are these : The petitioner company was incorporated on September 25, 1941, and came under the purview of the Insurance Act of 1938. The company applied for and obtained certificate of registration for carrying on various classes of insurance business. On October 15, 1956, there was an extraordinary general meeting of the shareholders of the company at which four resolutions were passed. By the first it was resolved : "that the company do forthwith cease to carry on business as insurer in respect of fire, motor, marine, and accident and other general insurance business." The second resolution required the directors

"to stop the carrying on the business of insurers in all the branches of the said business and not to issue any policy of insurance, cover notes or other contracts of insurance from and after this date." *

The third resolution required the board of directors to "carry on the business of money lending as a loan company and also to do investment business." The fourth resolution authorised and instructed the directors to notify the Controller of Insurance that the company had with effect from the date ceased to carry on the business of insurers. The directors were also instructed not to apply for renewal of the licences which the company held, when those licences terminated in the usual course. On December 10, 1956, the Company wrote to the Controller of Insurance, Government of India, informing him that by reasons of the resolution that had been passed at the extra ordinary general meeting of the company held on October 15, 1956, "we cannot apply to you for the renewal of registration under sub-section (2) of section 3A of the Insurance Act, 1938, and we are, therefore, not applying to you for the renewal of registration which please note". On May 14, 1957, the Controller of Insurance wrote to the company stating that as the company had failed to obtain renewal of its certificates of registration, the previous certificates had been cancelled with effect from July 1, 1957. The cancellation was also notified in the Gazette of IndiaIn October, 1956, and subsequently the Government of India received complaints against the company. On July 17, 1957, the Government of India passed an order directing the Controller of Insurance to investigate the affairs of this company and to submit a report. The Controller of Insurance appointed Messrs. Fraser and Ross, the first respondent in this petition, to be auditors to assist him in the investigation of the affairs of the company. Thereupon the company on October 9, 1957, wrote to the Controller of Insurance drawing his attention to the resolutions that had been passed and pointing out "We submit that the action taken by you purporting to be under section 33 of the Insurance Act of 1938, upon a direction from the Central Government in this behalf, is without jurisdiction and not warranted by provisions of the Act". The Controller wrote back overruling this objection raised by the Company. In consequence the company had come to this court and asked for the issue of a Writ of Prohibition

Mr. Jagadisa Aiyar, the learned counsel for the petitioner, argued : The only provision in the Act which enables the Central Government to issue an order of the kind now complained of is to be found in section 33 of the Act. The first sub-section of that section runs as follows

"The Central Government may at any time, by order in writing, direct the Controller or any other person specified in the order to investigate the affairs of any insurer and to report to the Central Government on any investigation made by him." *

The word "insurer" occurring in this