Appeal restriction in banking winding up schemes limits company law appeals; orders enforceable as decrees do not attract extra ad valorem fee.

Part IIIA's special statutory scheme for banking-company winding up overrides inconsistent Companies Act provisions, so appeal rights under general company law must be read subject to the Banking Act's appeal restriction; accordingly appeals are barred where the Banking Act precludes them. Proceedings under section 235 read with the Banking Act's special procedure are properly characterised as civil proceedings for appeal restriction purposes. Orders made under that procedure, although enforceable like decrees, are not decrees proprio vigore for Court Fees Act Article (1), so an additional ad valorem fee is not payable and the fixed fee suffices.

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Issues: (i) Whether Special Appeal No. 5 of 1960 against an order under section 235 of the Indian Companies Act, 1913 is maintainable in view of section 45N of the Banking Companies Act, 1949; (ii) Whether proceedings under section 235 of the Indian Companies Act, 1913 read with section 45H of the Banking Companies Act, 1949 constitute civil proceedings for the purposes of section 45N; (iii) Whether an ad valorem court fee under Schedule I, Article (1) of the Court Fees Act is payable on an order under section 235 read with section 45H, or whether the fixed court fee already paid is sufficient.

Issue (i): Whether Special Appeal No. 5 of 1960 is maintainable in view of section 45N of the Banking Companies Act, 1949, notwithstanding section 202 of the Indian Companies Act, 1913 and section 18 of the Rajasthan High Court Ordinance.

Analysis: Part IIIA of the Banking Companies Act, 1949 has overriding effect over inconsistent provisions of the Companies Act. Section 45H prescribes the procedure when applications under section 235 are made against officers of a banking company, and orders made under that procedure are subject to the restriction in section 45N which bars appeals in civil proceedings under the Act where the subject-matter value does not exceed Rs. 5,000. The right of appeal under section 202 of the Companies Act must be read subject to these special provisions applicable to banking companies and does not avail where Part IIIA applies.

Conclusion: In favour of Respondent.

Issue (ii): Whether proceedings under section 235 read with section 45H are civil proceedings for the purpose of section 45N of the Banking Companies Act, 1949.

Analysis: The statutory language and purpose distinguish civil from criminal proceedings; the proceedings under section 235 concern restitution and accountability in the course of winding up and fall within the ambit of civil jurisdiction of the High Court. Authorities and legislative context support treating such proceedings as civil for the application of appeal restrictions in the Banking Act.

Conclusion: In favour of Respondent.

Issue (iii): Whether additional ad valorem court fee under Schedule I, Article (1) of the Court Fees Act is payable on appeal from an order under section 235 read with section 45H, or whether the fixed court fee already paid is sufficient.

Analysis: A distinction exists between an order that has the force of a decree proprio vigore and an order that is enforceable as a decree. Orders under section 235 read with section 45H, though enforceable in the manner of decrees, are not decrees per se for the purposes of Schedule I, Article (1) of the Court Fees Act. In the absence of specific court rules prescribing a different fee, such appeals are treated like appeals from ordinary orders and the fixed court fee already paid is adequate.

Conclusion: In favour of Appellant.

Final Conclusion: The special appeal is not maintainable under section 45N of the Banking Companies Act, 1949 and is dismissed; however, no additional ad valorem court fee is payable and the fixed court fee already paid is sufficient.

Ratio Decidendi: Where a special statutory scheme for winding up banking companies contains an express restriction on appeals and an overriding provision, that scheme governs appealability of orders under the Companies Act and such orders, though enforceable as decrees, are not decrees proprio vigore for the purposes of assessing ad valorem court fees under the Court Fees Act.

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