TMI Blog1975 (12) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. Mr. Khanna appearing for the appellant firstly submits that he has a right of appeal and as such at the admission stage merits cannot be decided. He submits that appeal be admitted and finally heard in view of the provisions of section 483 of the Companies Act, 1956, (hereinafter referred to as the Act) and the decision of the Supreme Court reported in the case of M/s. Gotcha Investment (P) Ltd. v. Shanti Chandra Bafna A I R 1970 S C 1350. Secondly, he submits that on the merits the order of the learned Company Judge protecting the transaction in exercise of the power under section 536 (2) of the Act is questionable as it is made after the winding up order and should be reversed. 3. The first submission made on the basis of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as admitted. Surely the highest Court would not envisage such a process. 5. The jurisdiction to entertain an appeal flows from the principal provision of section 483 of the Act itself. That does not put any fetters to reject the worthless appeals at the initial stage, i.e. the admission stage, nor enacts the process that mere institution of the appeal would tantamount to its admission and must go for final hearing. That provision provides clearly for a remedy and is not intended to limit or control the exercise of the powers of the Court of appeal which has to be treated and proceeded with like any other civil appeal. In the constitution of such appeal and its procedure, the stage of admission, like the one of final hearing after issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y enacting provision like Order 41, rule 11, Civil Procedure Code. Even without such a provision, we would think that it would be in built in the appellate jurisdiction enabling the Court to hear the appellant as to the matter brought before it and reject the appeal which may prima facie have no merit or may suffer from the defects of untenability, limitation as well of incompetency. This stage, which is treated as admission stage of an appeal, appears to protect the litigation from waste of costs as well of public and private time. That can effectively check meritless and vexatious litigations. All these considerations must be kept in view while considering the format of appeal provided by statute. Provisions of section 483 and the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent being from the order of the single Judge and to the Bench of this Court because of the phraseology used by that section. Rule 3 in Chapter VI specifically provides that such appeals are to be placed for admission before the Division Bench and rule 5 makes provisions of Order 41 of the Code of Civil Procedure applicable to those appeals. Expressly, therefore, in these Rules, the stage of admission of the appeal by the Bench indicated and that would therefore suffice to indicate that the Court can exercise all the powers which the Court of appeal exercises at the stage of admission of the appeal including the one leading to decision that the appeal deserves to be dismissed and is not fit one to go in for final hearing. 8. Coming to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration and on the very second day, the Rajnandgaon Bank had honoured that draft. Interests of justice, therefore, are in favour of saving such a transaction. It is not as if that they any old debt or old credit is being discharged on 31st. To protect such bona fide transactions, we feel, the power has been conferred by the statute. No exception can be taken, therefore, to the order made by the learned Judge in holding that the transaction would not be void. In fact, Company Jurisprudence and the principles involved in such matters would tend to indicate that all transactions bona fide made and shown to be fair, just and reasonable deserve to be protected because of clear equity involved in such matters. The provision of section 536 (2) de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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