Private examination under company law may be revoked when sought solely for collateral use in misfeasance proceedings.

An ex parte order for private examination under section 477 of the Companies Act, 1956 may be vacated if it was obtained without full materials, by misstatement, or for a vexatious or collateral purpose unconnected with winding up. Private examination is confined to obtaining information relevant to the company's affairs, and differs from public examination under section 478. On the facts, the materials showed the examination was sought solely to gather evidence for pending misfeasance proceedings, not for the proper object of section 477, so the revocation application succeeded and the order was set aside.

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Issues: Whether an ex parte order directing private examination under section 477 of the Companies Act, 1956 was liable to be revoked on the ground that it had been sought solely to facilitate the prosecution of a misfeasance summons and for a collateral purpose.

Analysis: Section 477 contemplates private examination for obtaining information relevant to the winding up and the company's affairs, while an order of public examination under section 478 stands on a different footing. An ex parte order under section 477 is not final and may be vacated where it has been obtained by misstatement, without full materials, or where it is vexatious, oppressive, or otherwise made for an impermissible collateral purpose. On the facts, the materials in the summons, the supporting statement, and the reply showed that the private examination was sought not for the proper purposes of section 477, but solely to collect material for the pending misfeasance proceedings under section 543.

Conclusion: The order directing private examination was obtained for a collateral purpose and was liable to be revoked.

Final Conclusion: The ex parte order for private examination was set aside, and the revocation application succeeded.

Ratio Decidendi: An ex parte order under section 477 of the Companies Act, 1956 may be revoked if it is shown that the examination was sought solely to aid misfeasance proceedings or for any collateral purpose unconnected with the proper object of winding up.

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