Company meeting supervision limits prevent court from appointing an outsider to oversee an already convened meeting.

An application under Rule 9 and Rule 11(b) of the Companies (Court) Rules, 1959 was held not maintainable where the company meeting had already been duly convened by the company. The court reasoned that inherent powers or the wide language of Rule 9 cannot be used to appoint an independent chairman or an advocate-observer to supervise or observe such a meeting. Any grievance based on intimidation, irregularity, or unlawful conduct must be raised through appropriate later proceedings challenging the conduct or resolutions, rather than by inserting an outsider into the meeting.

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Issues: Whether an application under Rule 9 and Rule 11(b) of the Companies (Court) Rules, 1959 is maintainable for appointing an independent chairman or an advocate-observer in respect of a company meeting already duly convened by the company.

Analysis: The meeting in question had already been called by the company with notice, and the applicant's grievance was founded on apprehended intimidation and irregularity in the conduct of the meeting. The reasoning follows the principle that once shareholders' or company meetings are already convened by the company, the court cannot, by invoking inherent powers or the wide language of Rule 9, insert an outsider into the meeting merely to supervise or observe its proceedings. Such an intervention would extend beyond what is permissible even in cases where the court's assistance is sought in relation to meetings called under the Companies Act, and the applicant retains remedies to challenge any illegality or impropriety after the meeting.

Conclusion: The application was not maintainable, and no direction could be issued appointing either a chairman or an advocate-observer for the already convened meeting.

Ratio Decidendi: The court will not exercise inherent powers under Rule 9 to appoint an outsider to oversee a company meeting already duly called by the company, because the proper remedy lies in challenging any unlawful conduct or resolutions in subsequent proceedings.

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