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1961 (10) TMI 9

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..... ng up. On September 12, 1942, an order was made by the High Court under section 187 of the Indian Companies Act, 1913 (VII of 1913), for payment of unpaid calls and the appellants, Jyoti Bhushan Gupta and Gokul Chand, whose names had been placed on the list of contributories, were directed to pay with interest Rs. 95,178-5-9 to the official liquidator of the bank. This order was, by virtue of section 199 of the Act, enforceable in the same manner in which the decree of the High Court made in any suit pending therein may be enforced. On September 12, 1946, the order was transferred to the District Judge, Allahabad, for execution. On September 23, 1946, the official liquidator applied to the District Court, Allahabad, for execution of the ord .....

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..... y the High Court is not maintainable. We have not thought it necessary, having regard to the importance of the question raised by the appellants and the fact that this court may in a proper case regularise the proceeding in this court by granting special leave, even if a certificate under article 133 of the Constitution could not be issued by the High Court, to hear the parties on the question as to the maintainability of the appeal on the certificate and have heard the appeal on the merits. We are of the view that the appeal must fail on the merits. Article 182 of the Indian Limitation Act provides a period of three years for an application for execution of a decree or an order of any civil court not provided by article 183 or section 48 .....

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..... urt in directing payment under section 187 of the Indian Companies Act, 1913, is neither ordinary, nor original nor civil. He submits-that by section 187 a special power is vested in the High Court by the Indian Companies Act, 1913, which is exercisable in its extraordinary jurisdiction. To appreciate this argument it is necessary to refer to the statute authorising the establishment of the High Court, and the Letters Patent constituting the same. The High Court for the North Western Province, of which the Allahabad High Court is the successor, was constituted by the Letters Patent issued on March 17, 1866, in exercise of the powers conferred by clause 16 of the Charter Act of 1861 (24, 25 Viet., c. 104). By that clause, Her Majesty the Qu .....

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..... 6 of the Charter Act and clause 35 of the Letters Patent of the Allahabad High Court jurisdiction which was not initially conferred upon the High Court could be conferred by legislation within the competence of the Governor-General in Council and the Governor in Council. By the Companies Act of 1913, the High Court was invested with jurisdiction to order payment of the amounts due by debtors of companies ordered to be wound up. This jurisdiction may be invoked as of right against all persons whose names are placed on the list of contributories. The jurisdiction is ordinary ; it does not depend on any extraordinary action on the part of the High Court. The jurisdiction is also original in character because the petition for the exercise of th .....

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..... the Indian Limitation Act (XV of 1877) (which was similar to article 183 of the Indian Limitation Act, 1908) applies to a judgment of a court for the relief of insolvent debtors entered up in the High Court, in accordance with section 86 of the statute 11 and 12 Vic, c. 21. It was held in that case that although a court exercising insolvency jurisdiction determines the substance of the question relating to an insolvent's estate, the proceedings in execution and the judgment are the High Court's. The judgment is entered up in the ordinary course of the duty cast upon the High Court by the law, not by way of special or ext raordinary action, but in the exercise of its ordinary original civil jurisdiction. Lord Hobhouse delivering the judgment .....

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..... sted with insolvency jurisdiction whereas the High Court of Allahabad is not invested by the Letters Patent with any jurisdiction in the matter of companies and, therefore, the principle of Candas Narrondas's case (supra)does not apply. But under clause 18 of the Letters Patent a judge or judges of the High Court are to sit as a court for relief of insolvent debtors and powers and authorities with respect to original and appellate jurisdictions are to be determined by reference to the law relating to insolvent debtors. The jurisdiction to deal with the claims of companies ordered to be wound up is conferred by the Indian Companies Act and to that extent the Letters Patent are modified. There is, however, no difference in the character of th .....

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