Judicial discretion in altering objects clause guided by company interests, business morality, and national interests; sanction granted.

Alteration of a company's objects clause under section 17 of the Companies Act, 1956 is a discretionary matter even when statutory conditions are met. The court exercises a judicial discretion on the facts of each case, taking into account the company's view of its own interests as well as broader considerations such as business morality and national interests. On the facts stated, those considerations did not justify refusal of sanction, particularly because the company was a private, family-run concern in the nature of a quasi-partnership, and the alteration was sanctioned.

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Issues: Whether the alteration of the objects clause in the memorandum should be sanctioned under section 17 of the Companies Act, 1956.

Analysis: Confirmation of alteration of objects is a discretionary order even where the statutory conditions are satisfied. The discretion is judicial and must be exercised on the facts of each case. While the company's view of its own interests is relevant, the court may also consider business morality and national interests. On the facts, those considerations did not justify refusing sanction, particularly as the company was a private company in the nature of a small family concern or quasi partnership.

Conclusion: The alteration of the objects clause was sanctioned and the petition was allowed.

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