https://www.taxtmi.com/caselaws?id=99642 The grant of authorisation under section 399(4) of the Companies Act, 1956 was held to be a preliminary executive screening to determine whether a proposed oppression-and-mismanagement application was frivolous, not an adjudication on merits. Because the power did not create a lis and the company was not an opposing party at that stage, prior notice, hearing, and a reasoned order were not required. The statutory scheme showed that full hearing would arise only in the subsequent proceedings, so natural justice did not attach to the authorisation stage. The challenge therefore failed, and the authorisation was sustained. en-us Thu, 23 Nov 1978 00:00:00 +0530 Sat, 28 Jan 2012 11:56:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99642 The grant of authorisation under section 399(4) of the Companies Act, 1956 was held to be a preliminary executive screening to determine whether a proposed oppression-and-mismanagement application was frivolous, not an adjudication on merits. Because the power did not create a lis and the company was not an opposing party at that stage, prior notice, hearing, and a reasoned order were not required. The statutory scheme showed that full hearing would arise only in the subsequent proceedings, so natural justice did not attach to the authorisation stage. The challenge therefore failed, and the authorisation was sustained. Case-Laws Companies Law Thu, 23 Nov 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99642