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Judgment
Ross, J.—These appeals relate to the execution of a decree by the High Court of Allahabad in certain liquidation proceedings. These decrees were transferred for execution by the Allahabad High Court to the District Judge of Gaya. He held that u/s 200 read with Section 3 of the Indian Companies Act, 1913, he was not competent to deal with the case and he allowed the objections and struck off the execution.
The contention on behalf of the decree-holder in this Court is that, u/s 199.
all orders made by a Court under the Act may be enforced in the same manner in which decrees of such Court made in any suit pending therein may be enforced.
and, consequently, this section lets in Sections 38, 39 and 40 of the Code of Civil1 Procedure; and, as a decree in a suit by the Allahabad High Court can be transferred for execution to the District Court at Gaya, the same procedure is correctly followed in these liquidation proceedings. Now Section 199 is the general section; but the section particularly dealing with, the question of enforcement of an order outside the jurisdiction is Section 200 and that section provides that.
any order made by a Court for or in the course of the winding up of a Company shall be enforced in any place in British India other than that in which such Court is situate, by the Court that would have had jurisdiction, in respect of such Company if the registered office of the Company had been situate at such place.
and Section 201 requires the last mentioned Court to take the requisite steps in that matter. Now the Court described in these two sections is not the Court of the District Judge as he has rightly pointed out, but it would be this Court. Sections 199 and 200 must be read so as to be consistent with each other. If the interpretation placed upon Section 199 by the learned advocate for the appellants is correct, then Section 200 would be swept away altogether. It seems to me therefore that the learned District Judge is right.
It is then contended that as the case is now before this Court, it may be sent back in order that the District Judge may enforce the decree. But this is to ignore the procedure laid down by the Companies Act which must be strictly followed.
Finally it was argued that the third proviso to Section 3 validates these proceedings. But all that that proviso allows is that nothing in the section shall invalidate a proceeding by reason of its being taken in a Court. But where the objection is taken at the very beginning, the objection must be decided according to law; and the objection has been correctly decided in this case, and there is nothing to validate.
These appeals are dismissed; Appeal No. 8 without costs and Appeal No. 9 with costs.
Das, J.
I agree.