Inspection of company records and xerox copies may be ordered for fair conduct of proceedings when no real prejudice is shown.

Where inspection of company records has already been completed and evidence in proceedings under sections 397 and 398 of the Companies Act, 1956, is ongoing, the court may direct supply of xerox copies if that is necessary for effective conduct of the case and no real prejudice is shown. The restriction on inspection under section 209(4) was not treated as preventing use of relevant books of account in support of the respondents' case, and the court noted that its inherent power under section 151 of the Code of Civil Procedure, 1908, could be invoked where justice required. The order granting copies was upheld.

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Issues: Whether, after inspection of company records has already been allowed and completed, the respondents could be permitted to obtain xerox copies of the inspected documents for use in proceedings under sections 397 and 398 of the Companies Act, 1956.

Analysis: The appeal concerned a procedural direction for supply of copies of documents already inspected. The court noted that inspection had been completed, evidence had already commenced, and further witnesses remained to be examined. It held that, in such circumstances, allowing copies would assist the fair and efficient conduct of the trial and would not cause prejudice because the documents were already within the respondents' knowledge. The court also observed that, apart from the specific procedural framework, the court could exercise its power under section 151 of the Code of Civil Procedure, 1908, where justice so required. The restriction on inspection under section 209(4) of the Companies Act, 1956, could not be read as defeating the respondents' ability to use relevant books of account in support of their case under sections 397 and 398.

Conclusion: The respondents were entitled to xerox copies of the inspected documents, and the order directing supply of copies was upheld.

Ratio Decidendi: Where inspection of documents has already been completed and the copies are sought for effective conduct of evidence in company-law proceedings, the court may direct supply of copies in exercise of its procedural and inherent powers if no real prejudice is shown.

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