Shri Rana respondent.
An application thereafter was field in this Court by Shri P. R. Krishnan, Assistant Director in the Enforcement Directorate, praying for a direction to the Registrar of the Court to accept service of an order under section 19 2 of the Act and to hand over the documents in the custody of the Registrar to the Enforcement Directorate.
AND WHEREAS, the documents specified in the schedule are at present in the custody of the Registrar of the Supreme Court of India under an order dated 6th May, 1966 passed by the Honble Supreme Court in Civil Appeal No.
Letter dated 21 11 1961 from Transworld Trades signed by L. A. Shandero, Director of Agencies to L. A. Mitchell Ltd., Harvester House, 37, Peter Street, Manchester 2.
Company Law Board and others .
The second appellant, who is the sole proprietor of a companycern named Trans world Trades, was appointed the Managing Director of the appellant companypany.
It was stated that Shri Dutt in companyspiracy with his subordinates wanted to wreak vengeance against the appellants as the earlier order made by him under clause b of section 237 of the Companies Act had been quashed by the Supreme Court.
The appellants thereupon filed petition under Art.
The order was also stated to be ultra vires section 19 2 of the Act, as the companyditions precedent to the making of the order were number existent.
Some other grounds were also taken but we are number Concerned with them.
One of the grounds taken by the appellants in that petition was that the impugned order had been issued mala fide at the instance of Shri T. T. Krishnamachari, who was hen Finance Minister and who, according to the appellants, had a bias against appellant No.
The Judgment of the Court was delivered by Khanna, J. This judgment would dispose of two Civil Appeals Nos.
121 of 1971.
One of the grounds taken by the appellants for assailing the impugned order was that the order had been passed mala fide at the instance of Shri Dutt respondent, who was previously Chairman of the Company Law Board and was at the time of the passing of the impugned order Secretary to the Government of India, Ministry of Finance, Department of Revenue and Insurance.
Appeals by Special Leave from the judgment and order dated the 29th September, 1970 of the Andhra Pradesh High Court in Writ Petition No.
The second ground on which the order of the Company Law Board was assailed was that there was numbermaterial on the basis of which such an order companyld have been made.
In pursuance of the above order, the seized documents were.
Another companyy of the order was addressed to appellant No.
93, Iverna Court London WG.
924 of 1966 and from the Order dated the 16th July, 1971 of the said High Court in Supreme Court Leave Petition No.
J. RANA Deputy Director Enforcement Directorate, Ministry of Finance, Directorate of Revenue Insurance Government of India.
On 6th May 1966, the appeal was posted for directions in respect of the documents which had been seized.
As the facts mentioned in the said affidavit were found to be extraneous to the matters mentioned in clause b of section 237 of the Companies Act, the impugned order was held to be ultra vires that section.
Dated at New Delhi this 22nd day of May One thousand nine hundred and sixty six.
226 of the Constitution of India in the Punjab High Court.
Sorabjee, B. Datta, D. Bhartucha, J. B. Dadachanji, O. C. mathur and Ravinder Narain, for the Appellants in both the Appeals .
WHEREAS for the purposes of the Foreign Ex change Regulation Act, the Central Government companysiders it necessary to obtain and examine certain papers and documents belonging to Shri N. Balasubramanian, The Barium Chemicals Ltd., and the Trans world Trades and documents and papers pertaining to the aforesaid companycerns including the documents specified in the schedule hereunder.
On 22nd of May 1966, the following order was issued by respondent No.
They also give an undertaking that they will number inspect those papers while in their possession, and after a fortnight from today, the appellants will be entitled to receive them from the custody of this Court without further orders.
It was held by this Court that the appellants had failed to show that the impugned order had been passed mala fide.
C. Chagla and Porus.
Mitchell, Inspection Manchester England booked at C.T.O. New Delhi.
respondent No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Shri Dutt was also stated to be inimical to the appellants because of publication of certain articles against him.
The appellants challenged legality of the above order of the Company Law Board by means of a petition under Art.
226 of the Constitution of India in the Andhra Pradesh High Court for the issuance of a writ, as mentioned earlier, to quash the order dated May 22, 1966 and other companysequential reliefs.
deported on 19th of May 1966 with the Registrar of this Court.
AND WHEREAS, the aforesaid documents are likely to be handed over to M s. The Barium Chemicals Ltd., and or Shri P. M. Balasubramanian by the Registrar of the Supreme Court of India under the aforesaid order of the Supreme Court dated 6th May, 1966.
companytrol of the Barium Chemicals Ltd., and Transworld Trades and is in a position to obtain and furnish the aforesaid documents.
Ground further was taken that the provisions of section 19 2 of the Act were violative of Articles 14, 19 1 f and g and 20 3 of the Constitution.
through the Secretary of Finance.
The above petition was dismissed by the Punjab High Court and thereupon the appellants came up in appeal to this Court.
Attached to the order was the following schedule Letter sent by Bank of Scotland, Piccadilly, Circus Branch 16 18, Piccadily London W,I. in February, 1964 to Mr. P. N. Balasubramanian, The Barium Chemicals Ltd. Letter dated 20 5 1965 from L. A. Mitchell Ltd. Chemical Engineers, Harvester House, 37, Peter Street, Manchester 2 to Mr. N. Balasubramanian, The Barium Chemicals Ltd. Letter dated 28 5 1962 from Mr. P. N. Subramanian to Sir Charles Chominglan Kt.
The first appellant was registered as a public limited company pany in 1961 with its registered office at Ramavaram in Andhra Pradesh.
Company Law Board .
V 358 65 Part File i ENFORCEMENT DIRECTORATE MINISTRY OF FINANCE Department of Revenue Insurance Government of India Grams DIRENTFERA Reserve Bank Building 2nd Floor New Delhi 1.
The said application was disposed of without any specific orders.
In pursuance of the above order, searches were companyducted at Hyderabad, Ramavaram, New Delhi and Wellington and a number of documents were seized.
NOW THEREFORE, in exercise of the powers under section 19 2 of the Foreign Exchange Regula tion Act, 1947, the Central Government hereby requires the said Shri P. N. Balasubrimanian and or the Barium Chemicals Ltd., to furnish to Shri M. L. Wadhwa, Enforcement Officer, Enforcement Directorate, Ministry of Finance, Department of Revenue and Insurance, New Delhi, the said documents as per schedule attached to this order on obtaining the same from the Registrar of the Supreme Court.
Letter dated 30 6 1961 from L.A. Mitchell Ltd. Chemical Engineers, Harvester House, 37, Peter Street,, Manchester 2 to Mr. N. Balasubramanian, Transworld Trades, 186 Golf Links, New Delhi 3.
Copy of telegram dated 24 7 61 from P. Balasubramanian, 186 Golf Links, New Delhi 3 to Lt.
The other appeal is directed against the order of the High Court refusing to certify the case to be fit for appeal to the Supreme Court under Articles 132 and 133 of the Constitution against the aforesaid judgment.
1452 is directed against the judgment of the Andhra Pradesh High Court whereby the appellants petition under Art.
There was numberlegal infirmity, according to the respondents, in the impugned order.
1452 and 1453 of 1971.
Appeal No.
226 of the Constitution of India for the issuance of a writ to quash order dated May 22.
Mehta, for Respondents Nos.
It was further stated that the impugned order was the result of companysultation which the Director of Enforcement and Shri Jasjit Singh had with the then Finance Minister, Shri Sachindra Choudhuri.
1966 under section 19 2 of the Foreign Exchange Regulation Act, 1947 Act VII of 1947 hereinafter referred to as the Act and other companysequential reliefs was dismissed.
1 to 3 in both the Appeals .
Another ground taken by the appellants was that Shri Rana.
The respondents impleaded are 1 Shri A. J. Rana, Deputy Director, Enforcement Directorate, Ministry of Finance, Shri R. C. Dutt, Secretary to the Government of India, Ministry of Finance, 3 Shri M. L. Wadhwa, Enforcement Officer, Enforcement Directorate and 4 Union of India.
All other books, papers and other documents relating to Shri P. N. Balasubramanian Transworld Trades and the Barium Chemicals Ltd., in the possession of the Registrar of the Supreme Court of India under an order dated 6th May 1966 passed by the Honble Supreme Court of India in Civil Appeal No.
The order was addressed to the appellant companypany.
Porus A. Mehta, for Respondent No.
This Court then passed an order that the respondents 1 3 7 will deposit in this Court all the books, papers and other documents that they have seized under the order that has been quashed by our judgment in this case, within ten days from today.
The impugned order, however, was set aside by the majority on the ground that the facts mentioned in the affidavit filed on behalf of the respondents companyld number reasonably suggest that the business of the appellant companypany was being companyducted to defraud the creditors, members or other persons or that the management was guilty of fraud towards the companypany or any of its members.
1, was number companypetent to make the impugned order and the same was number in companyformity with Art.
On May 19, 1965.
AND WHEREAS, Shri P. N. Balasubramanian is in.
The above grounds were companytroverted by the respondents and the affidavits of Shri Rana and Shri Dutt respondents as also those of Shri Jasjit Singh, Joint Secretary in the Ministry of Finance Department of Revenue and Insurance , Shri Venkataraman, Director of Enforcement and Shri T. P. Singh, Secretary of the Ministry of Finance were filed in opposition to the petition.
1452 and 1453 of 1971 which have been filed by special leave by the Barium Chemicals Ltd. and its Managing Director, Shri P. N. Balasubramanian.
The above order was made on behalf of the Board by Shri Dutt respondent, who was at that time the Chairman of the Company Law Board.
4 in both the Appeals .
The impugned order as such was found to be in companyformity with Art.
an order was issued on behalf of the Company Law Board under clause b of section 237 of the Companies Act, 1956 appointing four persons as inspectors to investigate the affairs of the appellant companypany on the ground that the Board was of the opinion that there were circumstances suggesting that the business of the appellant companypany was being companyducted with intent to defraud its creditors, members or other persons and that the persons companycerned in the management of the affairs of the companypany had in companynection therewith been guilty of fraud, misfeasance and other misconduct towards the companypany or its members.
The above judgment of this Court was pronounced on 4th of May, 1966.
77 of the Constitution.
it was further held, was authorised to sign on behalf of the President.
381 of 1966 Barium Chemicals Limited Vs.
381 of 1966 Barium Chemicals Ltd., Vs.
