1958 (8) TMI 32

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....unt and to operate the said account or any other account that may be opened in the said bank either himself or through a person or persons duly authorised and to execute all documents necessary for confirming the existing mortgage, hypothecation agreement and cash credit agreement with the said bank and also to execute such other supplemental documents for the purpose of giving effect to the agreement by which the Government of India will guarantee the indebtedness of Richardson & Cruddas Ltd. to the said bank to the extent of Rs. 95,00,000. There can be no objection to that order being made and I am making an order accordingly. The next order that this application seeks is that in case of a dispute between the State Bank and the special o....

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....ny because I thought that the company was engaged in essential industries necessary for the implementation of the Second Five Year Plan for the country. Since the appointment of the special officer, attempts are being made by him to put the company's administration on a sound basis. The Corporation now makes the application to have a board of advisers to assist the special officer of this court in regulating and managing the company's affairs and its business. The pattern of the court's power of managing under section 402 has to be worked out. The section is an innovation in company administration by the court. Having heard the learned Advocate-General for the applicant on the point and other learned counsel appearing for the respondents, ....

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.... the company. I do not think there should be any representation from the shareholders having regard to the fact that the board of directors who are the representatives of the shareholders have already been removed on the ground of mismanagement. To represent the shareholders in the board of advisers will be to introduce the directors again through the back door. It is also a fact that the shareholders are divided into factious cliques whose representation in the board of advisers will in the particular facts of this case be neither practicable nor desirable. (3)The board of advisers may be called upon by the special officer to advise him on any matter relating to : (i)Acceptance and execution of orders and their priorities, (ii)Purchase ....