1953 (10) TMI 32 - HC - Companies Law

Official liquidator's appeal allowed in time limit dispute under Indian Companies Act

The appeal by the official liquidator of a bank against the dismissal of an application under section 235 of the Indian Companies Act by the District ... Winding up – Power of court to assess damages against delinquent, directors, etc. Issues:1. Application under section 235 of the Indian Companies Act dismissed as barred by limitation.2. Interpretation of sections 9 and 10 of the General Clauses Act in relation to the computation of time for filing the application.3. Comparison of section 9 of the Provincial Insolvency Act with section 235 of the Indian Companies Act regarding the treatment of prescribed periods.Detailed Analysis:1. The judgment involves an appeal by the official liquidator of a bank against the dismissal of an application under section 235 of the Indian Companies Act by the District Judge, South Malabar, on the grounds of being time-barred. The application was filed on 20th June, 1942, which was beyond three years from the date of the liquidator's appointment. The central issue was whether the application was within the prescribed time limit as per the statute.2. The court analyzed the application of sections 9 and 10 of the General Clauses Act to determine the computation of time for filing the application. The appellant's counsel argued that the first day, i.e., the day of the liquidator's appointment, should be excluded from the calculation. The court agreed with this interpretation, emphasizing that the word 'from' in the statute allows for the exclusion of the first day, as per the principle recognized in legal interpretations. The court rejected the argument that the word 'within' precluded the application of section 9, stating that it was used to denote the period for taking action, not for computing time.3. The judgment also compared section 9 of the Provincial Insolvency Act with section 235 of the Indian Companies Act regarding prescribed periods. It highlighted that the two statutes were not in pari materia, as the Insolvency Act required an act of insolvency within a specific period, unlike the Companies Act which only mandated the initiation of proceedings within three years. The court cited previous cases and interpretations to support its view that the application under section 235 was not subject to an antecedent requirement within a specific time period, allowing for the filing of the application on the next working day if the last day fell on a non-working day.4. Additionally, the court referenced a case where the period of limitation under section 235 of the Companies Act was compared to the Limitation Act. It was concluded that the period prescribed in section 235 prevailed over the general period of limitation for suits under the Limitation Act. The court also affirmed the applicability of section 10 of the General Clauses Act in allowing the filing of the application on the next working day if the last day for filing fell on a non-working day.In conclusion, the court allowed the appeal, set aside the District Judge's order, and remanded the application for further proceedings in accordance with the law.