Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1944 (5) TMI 17

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... was suggested that, the cases involved points of constitutional importance and accordingly the Bench referred the cases to be heard by a larger Bench. Notices were also sent to the Advocates-General of India and the Punjab as the validity of certain sections of a Punjab Act were said to be involved. The cases have therefore been heard by this Bench and the Advocate-General of the Punjab has appeared before us but the Advocate-General of India did not think it necessary to intervene. A company known as Sri Mandi Dabwali Brothers, Limited, was being, wound up voluntarily and in 1942 payment orders were made by the learned Liquidation Judge against the appellants in both cases. Later applications were made to execute these orders. Whilst ex .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... g companies, as such matters were entirely within the competence of the Central or Federal Legislature. In my judgment no point of constitutional importance arises in these cases. The applications to the Debt Conciliation Board were made in 1942 under section 9 of the Punjab Relief of Indebtedness Act, 1934, which, of course, had been enacted before the Government of India Act, 1935, came into force. The Debt Conciliation Board entertained the applications which brought into play section 25, sub-section (1), of the Punjab Act. That sub-section is in these terms: "When an application has been made to a board under section 9, or section 23, no Civil Court shall entertain any new suit or other proceedings brought for the recover of any .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the High Court. It was urged that the term "Civil Court" in the Punjab should also be held to apply only to those Courts of civil jurisdiction subordinate to the High Court and that the term did not include the High Court. In my judgment it is unnecessary finally to decide this question. I may point out that some of the arguments urged in Bengal could not be urged in the Punjab. In this province there are three classes of Courts, civil, criminal and revenue Courts. It may well be urged that a Court is a Civil Court if it exercises jurisdiction other than criminal or revenue jurisdiction. That being so, as winding-up jurisdiction is neither criminal nor revenue, it must necessarily be civil jurisdiction. There is considerable force in this .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... atever it might be when exercising jurist diction in winding up. If this Court was executing a decree passed in its extraordinary original jurisdiction, it would undoubtedly be a Civil Court and I can see no difference when it is executing an order of the learned Liquidation Judge which has the force of a decree. In both cases it is a Court exercising jurisdiction in execution matters under the Code of Civil Procedure and is therefore strictly a Civil Court. It was urged that the notices under section 25, Punjab Relief of Indebted ness Act, took away the jurisdiction of the learned Liquidation Judge, which had been expressly conferred upon him by the Companies Act and the provincial legislation in so far as it sought to affect companies .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uch amounts were in my view undoubtedly debts. Further, if the Liquidation Court was a Civil Court, they would be debts payable under an order of a Civil Court, but for the reasons 1 have given I do not think it necessary to pursue that matter any further. The liabilities of the appellants were debts and therefore section 25 would normally operate to stay all proceedings in execution in respect of such debts. [The learned Judge then considered the question whether the applications in respect of these debts is to the Debt Conciliation Board were not bona fide. These portions are not material for the purposes of this report and are therefore not printed here. Ed.] For these reasons I am satisfied that the board had jurisdiction to enter .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates