The Damodar Moholal Ginning and Manufacturing Company Ltd. vs Nagindas Maganlal

Basil Scott, Kt., C.J.—The opponent in November 1913 applied by Miscellaneous Application No. 235 of 1913 to the District Judge of Ahmedabad for an order that he should be registered as a share-holder in the Damodar Moholal Ginning and Manufacturing Company, and his application was allowed with costs. The pleader for the opponent, thereafter, presented a bill of costs prepared as if it were an attorney''s bill on the Original Side of the High Court, and that bill has been referred by the District Judge to the Taxing Master of his Court for taxation, the learned District Judge being of opinion that the High Court''s Rules had authorized a charging of costs of pleaders at the rates specified by Rule 704 in respect of all proceedings under the Indian Companies Act. It has been pointed out to us by the pleader for the applicant-Company that the power of the High Court to make rules specially relating to Company-applications is conferred by Section 254 of the Indian Companies Act (VI of 1882), and that power is limited to making rules concerning the mode of proceeding to be had for winding up a Company, and for giving effect to the provisions contained as to the reduction of capital and the subdivision of the shares of the Company. If this proceeding does not fall under any of those categories, it could not have been a proceeding regulated by those Rules made by the High Court under its powers under the Indian Companies Act. For the purpose of regulating the costs in other proceedings in Company matters, recourse must be had to Rules framed by the High Court under its rule-making power under the High Courts Act. Those Rules will be found in Chap. VIII of the Manual of Circulars of the Bombay High Court for the guidance of Civil Courts and Officers subordinate to it (Edition of 1912). We set aside the order of the District Judge and remand the case to him for disposal on the question of costs. No costs on either side of this application.