1995 ALL. L. J. 1721 ::(1996) 1 ComLJ 133 ::(1996) 21 CorLA 4

Allahabad High Court

Hon'ble Judge(s): M. C. Agarwal , J

Companies Act (1 of 1956) , S.397, S.398, S.394— COMPANY - Mismanagement - Petitionunder S.397, S.398 - Order of company Law Board - Can effectively transfer property without execution of deed of conveyance or its registration under Registration Act. The power to transfer properties is implicit in the exercise of power under Ss.397 and 398 and an order passed by the Company Law Board can effectively transfer property without the execution of a deed of conveyance or its registration under the Registration Act.(Para 12) It is true that a specific provision has been made in Section 394(2) of the Companies Act that property shall stand transferred by virtue of the order of the High Court, but that does not mean that the absence of such a provision under Ss.397, 398 would mean that the Company Law Board's order will not have any such effect. The Company Law Board has been given powers to make any orders with a view to end matters complained of and when such wide and absolute power has been given to the Board it cannot be imagined that the effectiveness of the orders of the Company Law Board would depend on its compliance by the parties particularly those against whom allegations of oppression and mismanagement were made. Section 394 of the Companies Act deals with reconstruction and amalgamation of companies and it was probably for ....