https://www.taxtmi.com/caselaws?id=97840 Sanction under section 237(1) of the Companies Act, 1913 required a real judicial assessment of whether the proposed prosecution was one a fair-minded and upright citizen would undertake at his own expense; approval based only on a prima facie case was insufficient, so the sanction order was erroneous and was set aside for reconsideration. The provisions governing the liquidator were treated as internal controls on his resort to prosecution, and they did not make the company court's sanction a condition precedent to the validity of criminal proceedings already instituted under the Indian Penal Code, so the pending prosecutions remained unaffected. en-us Mon, 03 Oct 1960 00:00:00 +0530 Wed, 18 Jan 2012 12:53:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97840 Sanction under section 237(1) of the Companies Act, 1913 required a real judicial assessment of whether the proposed prosecution was one a fair-minded and upright citizen would undertake at his own expense; approval based only on a prima facie case was insufficient, so the sanction order was erroneous and was set aside for reconsideration. The provisions governing the liquidator were treated as internal controls on his resort to prosecution, and they did not make the company court's sanction a condition precedent to the validity of criminal proceedings already instituted under the Indian Penal Code, so the pending prosecutions remained unaffected. Case-Laws Companies Law Mon, 03 Oct 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97840