SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2005 Supreme(All) 456

ALLAHABAD HIGH COURT
B.S. Chauhan and Dilip Gupta, JJ.
Registrar of Companies
Versus
Kamal Infosys Ltd.
COMPANY PETITION 57 of 2001
Decided On : 14 March 2005
Company Petition 57 Of 2001

Advocates:
A.B.L.Gaur, ANIL TIWARI, Avanish Mishra, PIYUSH AGRAWAL, S.P.PANDEY, SHYAMAL NARAIN, SUBODH KUMAR, UMESH CHANDRA,

The main legal point established in the judgment is that the jurisdiction for winding up petitions is determined by the location of the company's registered office and the notifications issued by the Chief Justice under the Amalgamation Order.

Headnote:

JURISDICTION - WINDING UP PETITION - Companies Act, 1956, Section 10 - Notifications dated 15. 7. 1949, 5. 8. 1975, 4. 1. 2003, and 14. 1. 2003 - The court determined the jurisdiction for winding up petitions based on the location of the company's registered office and the notifications issued by the Chief Justice under the Amalgamation Order. The Lucknow Bench's jurisdiction was restored for winding up proceedings by the 1975 notification, but subsequent proceedings were to be decided by the Allahabad High Court.

Fact of the Case:

The company petitions for winding up were filed before the Allahabad High Court, but the respondent-companies raised a preliminary objection regarding the jurisdiction of the Lucknow Bench. The court was tasked with determining the jurisdiction for hearing the winding up petitions.

Finding of the Court:

The court found that the jurisdiction for winding up petitions depended on the location of the company's registered office and the notifications issued by the Chief Justice under the Amalgamation Order. It concluded that the petitions were not maintainable before the Allahabad High Court as the registered office of the company was within the territorial jurisdiction of the Lucknow Bench.

Issues: The main issue was the jurisdiction for hearing the winding up petitions, specifically whether the Allahabad High Court or the Lucknow Bench had jurisdiction based on the location of the company's registered office and the notifications issued by the Chief Justice.

Ratio Decidendi: The court's decision was based on the interpretation of Section 10 of the Companies Act, 1956, and the notifications dated 15. 7. 1949, 5. 8. 1975, 4. 1. 2003, and 14. 1. 2003 issued by the Chief Justice under the Amalgamation Order, which determined the jurisdiction for winding up petitions.

Final Decision: The court concluded that the petitions were not maintainable before the Allahabad High Court and answered the reference by stating that the papers should be sent back to the learned Judge.

DILIP GUPTA, J.

( 1 ) A learned Judge of this Court has referred the following question to the Division Bench: "whether this company petition filed for winding up of the company (M/s. Kamal INFOSYS ltd. , Respondent No. 1) having its registered office at Lucknow is maintainable in the High court at Allahabad. "

( 2 ) THE facts and circumstances giving rise to this case are that the Companies and their Directors are being prosecuted after investigation made by the C. B. I. for cheating several investors, Banks and financial institutions through forgery, corruption and illegal means. The C. B. I. had registered the cases against Directors of the said Companies. Company petitions were filed by the Registrar of the Companies before this Court and the same were advertised in accordance with Rule 24 of the Companies (Court) Rules, 1959, and notices were issued to the respondents. Appointment of the Official Liquidator of the Company was also made and further directions had been issued to him. However, the said orders have subsequently been kept in abeyance. The respondent-Companies have raised a preliminary objection regarding the jurisdiction of allahabad High Court to entertain the said winding up petitions.

( 3 ) THE learned Judge, after hearing the learned counsel for the parties, realised that the issue of jurisdiction of Allahabad High Court and its Bench at Lucknow had been considered several times. However, a Division Bench of this Court in Sumac International Ltd. v. P. N. B. Capital services Ltd. , AIR 1997 All 424 had rejected the similar contention, holding that such Company matters can be heard only at Allahabad, and the jurisdiction of the Lucknow Bench stood excluded completely. Hence this Reference.

( 4 ) SHRI Umesh Chandra, learned Senior Counsel, appearing for the Companies has submitted that the Honble Apex Court has considered the issue of jurisdiction of the Allahabad High Court and its Lucknow Bench in a large number of cases, and it has always been held that the jurisdiction will depend upon the cause of action arising, partly or fully, within the respective territorial jurisdiction of the High Court and its Bench. The jurisdiction of the Lucknow Bench in company matters had been excluded by Notification dated 15. 7. 1949 issued by the Honble chief Justice under the second proviso to Clause 14 of the United Provinces High Courts (Amalgamation) Order, 1948 (hereinafter called the Amalgamation Order ). However, the same stood restored vide Notification dated 5. 8. 1975, but the said Notification dated 5. 8. 1975 could not be brought to the notice of this Court while deciding Sumac International Ltd. (Supra ). Therefore, the said judgment remains per in curium and does not have any binding force. Thus, the objections of the Companies should be allowed and the matter should be transferred to the lucknow Bench for further proceedings till the winding up proceedings are completed.

( 5 ) SHRI Subodh Kumar, learned counsel appearing for the Registrar of Companies and Shri piyush Kumar Agrawal, learned counsel for the Official Liquidator have submitted that while deciding the case in Sumac International Ltd. (Supra), the Division Bench had also considered other issues and held that it was merely a technical breach and the Allahabad High Court cannot be held to be patently lacking the jurisdiction, and their Lordships opined that even otherwise the cases could not be transferred to Lucknow Bench, and in view of the above, the objections are liable to be rejected.

( 6 ) WE have considered the rival submissions made by the learned counsel for the parties and have perused the record.

( 7 ) AS per the provisions of Section 10 of the Companies Act, 1956, the jurisdiction in Company matters lies with the High Court where the Company has its Registered Office. Therefore, as all the Companies are registered at Lucknow, the cases could have been filed only before the lucknow Bench in ordinary circumstances. Sub-section (3) furthe


























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top