In Re: Karumuthu Thiagarajan, Managing Agent and Director of the Sri Minakshi Mills Ltd.

Lakshmana Rao, J.—The petitioner is the managing agent and director of the Sri Meenakshi Mills, Ltd., Madura, and the petition is to revise

his conviction u/s 140(3) of the Indian Companies Act for refusal to produce the books and documents of the Company before the Inspector

appointed u/s 138 of the Act.

The refusal to produce the books and documents of the Company was not disputed in this Court but the Inspector was appointed by the

Provincial Government by order dated 18th August, 1937, subsequent to the transfer of the functions of the Local Government u/s 138 of the

Indian Companies Act to the Central Government by the new Act and these functions were not entrusted to the Provincial Government by the

Governor-General u/s 124(1) of the Government of India Act till 1st April, 1938. Paragraph 8(2) of the India and Burma (Transitory Provisions)

Order, 1937, empowers the Governor and not the Provincial Government to continue to discharge these functions in the interval and the

prosecution case hitherto was that the Inspector was appointed by the Provincial Government. The authentication of the order of the Provincial

Government in the manner specified in the rules framed u/s 59(2) of the Government of India Act would not make it an order of the Governor

under paragraph 8(2) of the India and Burma (Transitory Provisions) Order, 1937, and it follows that the Inspector was not validly appointed. The

conviction of the petitioner u/s 140(3) of the Indian Companies Act cannot therefore be sustained and it is unnecessary to consider the contention,

that ex facie the Inspector was appointed on the report of the Registrar of Joint Stock Companies and not the Assistant Registrar who made the

investigation u/s 137 of the Act and the appointment is consequently invalid. The conviction of the petitioner is accordingly set aside and the fine if

levied will be refunded.