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1995 (1) TMI 268 - SC - Companies LawWhether or not the appellant could be appointed or continued as the managing director of the company after his conviction by the Additional Sessions Judge, Delhi? Held that:- In a fit case, if the High Court feels satisfied that the order of conviction needs to be suspended or stayed so that the convicted person does not suffer from a certain disqualification provided for in any other statute, it may exercise the power because otherwise, the damage done cannot be undone; the disqualification incurred by section 267 and given effect to cannot be undone at a subsequent date if the conviction is set aside by the Appellate Court. But while granting a stay of suspension of the order of conviction, the Court must examine the pros and cons and if it feels satisfied that a case is made out for grant of such an order, it may do so and in so doing, it may, if it considers it appropriate, impose such conditions as are considered appropriate to protect the interest of the shareholders and the business of the company. Since the interim order of stay did not specifically extend to the stay of conviction for the purpose of avoiding the disqualification under section 267, there is no substance in the appeal and the appeal is, therefore, dismissed.
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