Interlocutory relief in company proceedings upheld where existing contracts needed completion to avoid defeating justice.

Section 186 proceedings were treated as not excluding the court's power to make interlocutory orders needed to prevent the petition from becoming infructuous or justice from being defeated. The court read the provision as addressing directions for calling, holding and conducting the meeting, while relying on the procedural and inherent powers recognised by the Code of Civil Procedure, including sections 94 and 151, to secure substantial justice and prevent abuse of process. On the facts, the company faced possible loss if existing contracts were not performed and related payments were withheld, so the interim order was modified to permit completion of those agreements and payments.

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Issues: Whether the court had power, in proceedings under section 186 of the Companies Act, to grant interlocutory protection by interim order and whether the existing interim order should be modified to permit completion of pre-existing contracts and related payments.

Analysis: Section 186 was read as clarifying the nature of directions that may be given for calling, holding, and conducting the meeting, but not as limiting the court's general or inherent powers to make interlocutory orders necessary to prevent the petition from being rendered infructuous or the ends of justice from being defeated. The procedure under section 141 of the Code of Civil Procedure, 1908 was treated as applicable, and sections 94 and 151 of that Code were relied upon as recognising the court's authority to make interlocutory and inherent orders to secure substantial justice and prevent abuse of process. On the facts placed before the court, the company faced potential loss if already entered contracts were not carried out and payments were not made.

Conclusion: The court held that it had power to grant interlocutory relief in the proceedings and modified the interim order to the extent of permitting the company to complete the existing agreements and make payments in respect thereof.

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