Persons aggrieved under Section 183(5) may seek reconsideration of ex parte solicitor appointments; petitioning creditors' solicitors engaged.

Persons aggrieved under Section 183(5) include petitioning creditors and may apply to have an ex parte sanction for appointment of solicitors reconsidered; the Court held that such orders can be reviewed when founded on insufficient materials. The note emphasises established practice favouring petitioning creditors' solicitors in liquidation, the prejudicial consequences of appointing unfamiliar firms, and the proper allocation of costs; accordingly the petitioning creditors' solicitors should be employed by the Official Liquidator and the Liquidator's specified costs paid from the company's assets.

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Issues: Whether an ex parte order sanctioning the appointment of solicitors for the Official Liquidator can be reconsidered on application of petitioning creditors under Section 183(5) of the Indian Companies Act, and whether the petitioning creditors' solicitors should be appointed instead of a firm not previously concerned with the proceedings.

Analysis: The Court examined the jurisdiction to review an ex parte sanction of solicitors' appointment and concluded that persons interested, including petitioning creditors, fall within the class of "persons aggrieved" under Section 183(5) and therefore the Court may reconsider such ex parte orders when proper materials are placed before it. The Court considered established practice favouring the petitioning creditor's solicitors in liquidation matters, the practical consequences of appointing a new firm unfamiliar with protracted and complicated proceedings, and the potential for increased expense without corresponding efficiency. Having heard the Official Liquidator's representatives and reviewed affidavits and precedents, the Court found that the appointment had been made on insufficient materials and that the petitioning creditors' solicitors were better placed to assist the Liquidator and would avoid unnecessary additional costs to the company.

Conclusion: The Court set aside the ex parte order of 26th September 1934; it held that the petitioning creditors are persons aggrieved under Section 183(5) and ordered that the petitioning creditors' solicitors be employed by the Official Liquidator. The Official Liquidator's costs as between attorney and client and the specified taxing directions were ordered to be paid out of the company's assets.

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