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PETITIONER: Dr. SAILENDRA NATH SINHA AND ANOTHER
Vs.
RESPONDENT: JASODA DULAL ADHIKARI AND ANOTHER
DATE OF JUDGMENT: 11/09/1958
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. IMAM, SYED JAFFER
CITATION: 1959 AIR 51 1959 SCR 1263 CITATOR INFO : D 1960 SC 576 (25)
ACT: Official Liquidator-Powers of-Prosecution of Director of Company-If direction of Court necessary-Court giving direction, if bound to hear Director-Indian Companies Act, 1913 (VII Of 1913), ss. 179 and 237(1).
HEADNOTE: The Official Liquidator got a complaint under ss. 120-B, 406, 467 and 477A, ’Indian Penal Code filed before the Presidency Magistrate against the appellants one of whom was a past director and the other the Managing Director of the Bank of Commerce Ltd., which was in compulsory liquidation. The appellants applied to the Presidency Magistrate for dismissal of tile complaint on the ground that the Official Liquidator was incompetent to prefer the complaint as there was no sanction of the Company judge. This was dismissed. The appellants then applied to the High Court for quashing the criminal proceedings on the ground that the prosecution was ab initio void because of the absence of a prior direction judicially given by the High Court under S. 237(1) of the Indian Companies Act. The High Court rejected the application. Held, that a direction of the Court und...