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        Companies Law

        1966 (10) TMI 78 - HC - Companies Law

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        Exclusion of Court Time for Certified Copies applies only after a proper application; party-attributable delay remains non-excludable. Exclusion of court time for obtaining certified copies under the Limitation Act extends only to the period the court takes to prepare the decree or order ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                              Exclusion of Court Time for Certified Copies applies only after a proper application; party-attributable delay remains non-excludable.

                              Exclusion of court time for obtaining certified copies under the Limitation Act extends only to the period the court takes to prepare the decree or order after a party has properly applied; delays caused by the party's failure to requisition or take necessary steps are not excluded. Companies Court Rules requiring the Registrar to draw up orders do not implicitly override Original Side Rules that mandate a written requisition; the practice of requiring requisition is saved. Applying these principles, delay may be condoned and interim relief granted where the applicant promptly sought certified copies, was not guilty of laches, and complies with court-imposed protective terms.




                              Issues: (i) Whether time for obtaining a certified copy of the decree or order is to be excluded under Section 12(2) of the Limitation Act, 1963, where requisition for drawing up the order was not initially made; (ii) Whether the Registrar is obliged to draw up a winding-up order without a party's requisition in view of Rules in the Companies (Court) Rules, 1959 and the Companies Act; (iii) Whether the applicant is entitled to condonation of delay to file the memorandum of appeal and to an interim injunction restraining the respondent from giving effect to the winding-up order pending appeal.

                              Issue (i): Whether time for obtaining a certified copy is excluded under Section 12(2) of the Limitation Act, 1963, notwithstanding that the party had not initially put in requisition for drawing up the order.

                              Analysis: Section 12(2) excludes the day the judgment was pronounced and the time requisite for obtaining a copy of the decree or order. The Explanation excludes court time taken to prepare the decree after an application for a copy has been made. Precedents under earlier Limitation Act interpretations (Pramatha Nath Ray, J.N. Surty, Parijat Debi and others) construe "time requisite" as excluding only that time which is not due to the appellant's default. The court examined these authorities and the Privy Council and Supreme Court pronouncements on the meaning of "requisite" and the proper construction of exclusion under Section 12(2) and (3).

                              Conclusion: The time requisite for obtaining a certified copy is excludable under Section 12(2) of the Limitation Act, 1963, but the exclusion does not cover periods of delay attributable to the party's own default in taking necessary steps to have the order drawn up; only the court's time after the party has properly moved for drawing up the order is to be excluded.

                              Issue (ii): Whether the Registrar must draw up a winding-up order without requisition by a party in view of Rule 111(1), Rule 37(1) of the Companies (Court) Rules, 1959 and provisions of the Companies Act.

                              Analysis: Rules 37(1) and 111(1) require the Registrar to draw up orders, and the Companies Act requires intimation to the Official Liquidator and filing of certified copies. However Rule 6 of the Companies (Court) Rules saves the practice and procedure of the High Court "save as otherwise provided." The Original Side Rules (Rule 27, Chapter XVI and Rule 71A, Appendix 7) require requisition in writing for drawing up orders and set out the petitioner's duty in winding-up matters. The provisions are reconcilable: the Companies rules do not implicitly abrogate the Original Side requirement for a requisition where the court's practice requires it.

                              Conclusion: The Registrar is not obliged to draw up a winding-up order without a proper requisition where the Original Side Rules require one; the practice requiring requisition remains saved and applicable.

                              Issue (iii): Whether the applicant should be granted leave to file the memorandum of appeal out of time (or condonation of delay) and an interim injunction pending disposal of the appeal.

                              Analysis: Applying the legal positions on exclusion of time and requisition, the court considered the facts that the applicant's court clerk sought certified copies within the relevant period, that the failure to requisition initially was not due to laches, and that the applicant subsequently placed requisition with leave of court. Given these circumstances and the court's discretion on condonation and interim relief, relief could be granted subject to suitable terms to protect respondents and public interest.

                              Conclusion: The petition for leave to file the memorandum of appeal without the certified copy (with undertaking), for condonation of delay/extension of time, and for interim injunction is allowed on terms: the applicant is permitted to file the appeal (and is entitled to exclusion of requisite time subject to appellant's default principles), delay is condoned, and an interim injunction is granted on specified conditions including furnishing security and limits on dealing with company property.

                              Final Conclusion: The Court concluded that Section 12(2) of the Limitation Act, 1963, permits exclusion of the time for obtaining certified copies but that exclusion excludes only court time after a party has properly moved for the drawing up of the order; Original Side requisition requirements for drawing up orders remain operative and saved by Rule 6 of the Companies (Court) Rules, 1959; applying these principles to the facts, the applicant's delay is excused and interim relief is granted on terms.

                              Ratio Decidendi: Time excluded under Section 12(2) of the Limitation Act, 1963, includes the period taken by the court to prepare a decree or order after a party has properly applied for a certified copy, but excludes periods of delay attributable to the applicant's failure or default in taking necessary steps to have the decree or order drawn up.


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