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Issues: Whether the Madras City Civil Court is a "District Court" within the meaning of section 2(14) of the Companies Act, 1956 so as to exercise jurisdiction under section 10(2) of that Act and whether the petition could therefore be transferred to that court.
Analysis: Section 10(2) authorises the Central Government to empower District Courts to exercise jurisdiction under the Act. The definition of "District Court" in section 2(14) requires it to be the principal civil court of original jurisdiction in the district. The Madras City Civil Court was held not to satisfy that description because its jurisdiction was limited under section 3A of the Madras City Civil Courts Act, 1892 and it was not the principal civil court of original jurisdiction in Madras.
Conclusion: The Madras City Civil Court had no jurisdiction under the notification to deal with the matter, and proceedings under section 10(2) of the Companies Act, 1956 were to be dealt with by the High Court.