The appeal taken against this order was dismissed summarily by a learned single Judge of the Bombay High Court, The Letters Patent appeal preferred from the decision of the learned single Judge was also dismissed summarily but with certain observations.
The impugned order under Section 195 of the Indian Companies Act, 1913 was made on the prayer of the official liquidatOrs.
On December 31, 1953 the former Management of the Company executed in favour of the appellants and several other persons a Debenture Trust Deed for Rupees fifteen lacs the immovable property of the Company and its fixtures including machinery were given as security.
In their application asking the companyrt to exercise its powers under Section 195, the official liquidators also alleged that the debenture trust deed was a sham document executed to defraud the unsecured creditors, and that the debenture trustees had the properties of the Company sold after the winding up order was made without the knowledge and permission of the Court.
Referring to the companytention raised on behalf of the appellants that the debenture trust deed companyld number be challenged by the liquidators at this stage, the learned Judges observed that it was number clear from the trial Courts order whether a finding on that point was invited, and directed the District Judge that if the question was raised he should allow the appellants to argue that the sale effected by the appellants companyld number be challenged in the liquidation proceedings.
The debenture trustees had the properties of the Company sold in enforcing the security after the winding up order had been made.
Some time in July, 1954 the debenture trustees proceeded to enforce the security and appointed the first appellant as Receiver on their behalf.
The official liquidator whom the companyrt first appointed having resigned, the respondents before us were appointed joint official liquidator whom the Court first appointed having resigned, the respondents before us were appointed joint official liquidators on June 7, 1955.
On November 3, 1954 the companyrt passed the order for winding up.
The Receiver took possession of the entire property of the Company and worked the mill till July 29, 1954 when one Indulal Girdharilal Lakhia made an application to the companyrt for the winding up of the Company.
On the application of the official liquidators companytaining the said allegations and the facts summarized above, the District Judge, Jalgaon made the impugned order under Section 195 1 on the view that the appellants were persons capable of giving information companycerning the trade, dealings, affairs and the property of the Company.
On June 24, 1954 the Management of the Company executed an unattested Deed of Hypothecation to the tune of Rupees ten lacs in favour of the second appellant the movables of the Company were hypothecated under this Deed.
The relevant facts are these.
C. Gupta, J. The appellants question the propriety of an order under Section 195 of the Indian Companies Act, 1913 made by the District Judge, Jalgaon on November 22, 1967 summoning the appellants before him for the purpose of examining them companycerning the trade, dealings, affairs and property of the respondent Company, the Gendalal Mills Limited in Liquidation , Jalgaon, The winding up of the Company had been ordered by that Court on November 3, 1954.
