AIR 1959 SUPREME COURT 51 ::1959 SCR 1263 ::1959 MadLJ(Cri) 122 ::1958 28 Com Cas 609 ::1959 SCJ 205

Supreme Court Of India

From Calcutta : (S) AIR 1955 Cal 29) 11th September, 1958.

Hon'ble Judge(s): S. Jafer Imam, J. L. Kapur , JJ

Companies Act (7 of 1913) , S.237(1), S.237(6), S.179— Scope of - Camplaint by liquidator - Absence of direction by Court or hearing of accused persons - Effect on prosecution. Companies Act (1 of 1956) , S.545(1), S.545(6), S.457— Sectionn 179 deals with the powers of liquidators to institute or defend proceedings with the sanction of the Court and Section 237 (i) deals with the powers of the Court to give directions for prosecution of delinquent directors etc. But neither S. 179 nor S. 287 indicates that if the liquidator takes action without a direction of the Court the action would be illegal or invalid or it would invalidate a prosecution. AIR 1937 All 714 and AIR 1953 Cal. 153, Ref.(Para 12 13) Under S. 237(1) the Court may direct the liquidator to himself prosecute the offender or to refer the matter to the registrar. Giving an opportunity to the offender before such direction is given by the Court is not a prerequisite of the Judge making an order under sub-s. (1). Under sub-s. (6) the registrar is required to give the offender an opportunity to show cause before a prosecution is undertaken. That is a far step from saying that S. 237 (1) of the Companies Act requires a Judge to give the offender an opportunity before he gives a direction for prosecution by the liquidator or for refere....