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of <h1>Appeal Dismissed: Investigation Order Not a Judgment.</h1> The appeal against the order directing the appointment of inspectors to investigate the affairs of a company was dismissed. The court held that the order ... Investigation of company’s affairs in other cases Issues:1. Appeal against the order directing the appointment of inspectors to investigate the affairs of a company.2. Preliminary objection to the maintainability of the appeal based on the definition of 'judgment' under the Letters Patent.Analysis:The judgment in question involves an appeal against an order by a learned judge directing the Government of India to appoint competent persons as inspectors to investigate the affairs of a company under the Indian Companies Act. The substantive application sought the appointment of an administrator or receiver due to alleged mismanagement by the board of directors. The judge tentatively found a prima facie case for investigation and called for a report from the Central Government-appointed officers. Some directors of the company filed the appeal against this order.A preliminary objection was raised regarding the maintainability of the appeal, arguing that the order did not constitute a 'judgment' as per the Letters Patent. The scope of section 237 of the Act, which allows for investigations into a company's affairs, was discussed. The court clarified that directing an investigation under this section is akin to issuing a fact-finding commission, not a final adjudication affecting the company or its directors. The order for investigation does not give rise to a legal grievance.The court referred to previous cases to determine the characteristics of a judgment, emphasizing that for an order to be appealable, it must terminate the proceedings or affect the merits of the controversy between the parties. In this case, the court held that the order for investigation did not satisfy the test for being considered a judgment. The order merely indicated a prima facie case for further investigation, with the possibility of the management being vindicated or leading to subsequent proceedings. Therefore, the court concluded that the order did not qualify as a judgment under the Letters Patent, and the appeal was dismissed with costs.
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