High CourtsDivision Bench(1926) 08 MAD CK 0054

In re: Indian Companies Act: and in the matter of British Banking and Industrial Corporation Ltd.

Madras High Court · Decided on 5 August 1926 · Citation: AIR 1927 Mad 271 : (1927) 25 LW 113

HON’BLE JUDGES
Srinivasa Aiyanger, J

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Judgment

31 paragraphs · 692 words

Srinivasa Aiyanger, J.—These are applications made in terms for directing the respective District Courts to enforce the payment orders

made by the Bombay High Court in the matter of the winding up of the Company named in the cause title against contributories for various

amounts. The certified copies of the orders passed by the Bombay High Court have now been put in.

2.

By virtue of Section 200 of the Companies Act an order, made by one Court, it is stated:

shall be enforced in any place in British India other than that in which that Court is situate, by the Court that would have had jurisdiction in respect

of such Company if the registered office of the Company had been situate at such other place and in the same manner in all respects as if such

order had been made by the Court that is hereby required to enforce the same.

3.

The places where the orders are required to be enforced are the places in the districts mentioned respectively in the applications. If the

Company had had registered offices in those places the Court which would have had jurisdiction in respect of such Company is this Court under

the definition of ""Court"" in Section 2, Clause (3), of the Companies Act. Further the same Section 200 provides that the order shall be enforced in

the same manner in all respects as if such order had been made by the Court that is hereby required to enforce the same.

4.

In other words, that section authorizes this Court, for purposes of enforcement, to regard it as an order passed by this Court itself. Nextly,

under the provisions of Section 199 of that Act, it is provided that

all orders made by a Court under this Act may be enforced in the same manner in which decrees of such Court made in any suit pending therein

may be enforced.

5.

The result, therefore, is that by virtue of Section 200 the order made by the Bombay High Court is required to be regarded as an order made by

this Court, and by virtue of Section 199 that order comes to have the same force and effect as a decree passed by this Court.

6.

The learned vakil for the petitioner, Official Liquidator, submitted that, under the provisions of Section 164 of the Companies Act, this Court

should make an order directing all subsequent proceedings to be had in the District Court. I am satisfied that that section has absolutely no

application whatever to the matter on hand.

7.

That refers only to the Court that passes the winding up order and the order contemplated to be made by the section is an order that all

subsequent proceedings in the winding up should be had or may be had in a District Court, but that is not the order now contemplated or required.

The learned vakil also referred to me a case reported in In the matter of the National Insurance and Banking Co. Ltd. [1920] 54 I. C. 384. In that

case two learned Judges of the Allahabad High Court would appear to have held that, under the provisions of Section 164 of the Companies Act,

it was competent to the Allahabad High Court to authorize the Official Liquidator to apply to the District Courts within the United Provinces for

enforcing the orders passed by the Punjab Court. With all due deference to the learned Judges that decided that case, I am unable to agree with

the decision. I rather think that the proper procedure, as indicated by the conjoint effect of Sections 199 and 200 of the Companies Act, is that the

order now filed in this Court should be treated in the same manner as a decree passed by this Court and transferred for execution to the respective

District Courts.

8.

There will therefore be an order in all these applications directing the transfer of the order to the District Court concerned for execution by that

Court against the contributory in the same manner and to the same extent as if the order was a decree passed by this Court.