| Case ID |
1f47a409-19af-4fc2-95ed-dd560dde5ea6 |
| Body |
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| Case Number |
Intra-Court Appeal No. 3-Com of 1978 |
| Decision Date |
Mar 25, 1979 |
| Hearing Date |
|
| Decision |
The Lahore High Court dismissed the Intra-Court Appeal filed by Eastern Company (Private) Ltd. The Court upheld the decision of the learned Single Judge to appoint a Receiver to manage the affairs of the company due to allegations of mismanagement and misappropriation of assets by appellant No. 2. The Court emphasized the need for a Receiver to protect the interests of shareholders and complete existing contracts, thereby ensuring that the company could function during the winding up proceedings. The decision highlighted the applicability of various laws, including the Companies Act and the Law Reforms Ordinance, in determining the maintainability of appeals from interlocutory orders. |
| Summary |
The case revolves around the winding up of Eastern Company (Private) Ltd., initiated by the respondents due to alleged misconduct by one of the directors, Kausar Salam Sheikh. The Lahore High Court was tasked with determining the appeal against the appointment of a Receiver. The Court ruled that the appointment was justified given the evidence of misappropriation and the need to protect the company's assets. The ruling clarifies the powers of the High Court under the Companies Act and the Law Reforms Ordinance, reinforcing the right to appeal against decisions made during winding up proceedings. This case is crucial in understanding corporate governance and the legal framework surrounding company winding up procedures. Keywords include 'winding up proceedings', 'Companies Act', 'Receiver appointment', and 'corporate governance'. |
| Court |
Lahore High Court
|
| Entities Involved |
EASTERN COMPANY (PRIVATE) LTD.,
Mst. GUL BEGUM
|
| Judges |
SHAFI-UR-RAHMAN,
M. MEHBOOB AHMAD
|
| Lawyers |
Muhammad Arif,
Zafar Iqbal Bajwa,
Munawwar Akhtar
|
| Petitioners |
EASTERN COMPANY (PRIVATE) LTD., LAHORE AND 2 others
|
| Respondents |
Mst. GUL BEGUM AND 7 OTHERS
|
| Citations |
1980 SLD 567,
1980 PLD 69
|
| Other Citations |
Kailash Chandra Datta v. Sadar Munsif Silchar A I R 1925 Cal. 817,
Radha Kanta Pal v. Benode Behari Pal and others A I R 1934 Cal. 444,
Lala Mulk Raj Bhalla v. Official Liquidator of the Peoples Bank of Northern India Ltd. A I R 1938 Lab. 658,
Sansar Chand and others v. Punjab Industrial Bank Ltd., Lahore I L R 10 Lab. 806,
Madan Gopal Doga v. Sochindra Nath Seth A I R 1928 Cal. 295,
V. M. Abdul Rahman and others v. D. K. Cassim & Sons and another A I R 33 P C 58,
Seth Haribans Prasad Ajodhia Prasad v. National Sugar Mills Ltd., A I R 1931 Lab. 8,
Suraj Mia v. The Pioneer Bank Ltd. 20 D L R. 1206,
Muhammad Arjumund Malik and others v. Haji Abdul Ghani and another P L D 1967 Kar. 44,
Ratan Lal v. Jagadhri Light Railway Company A I R 1946 Lab. 193,
Haribans Prasad Aydhya Prasad v. The National Sugar Mills, Delhi I L R 14 Lah. 68,
Ladli Prasad Jaiswal v. The Karnal Distillery Company Ltd. P L D 1965 S C 221,
Sh. Munir Ahmad v. Muhammad Ismail and 2 others 1971 S C M R 666
|
| Laws Involved |
Companies Act (VII of 1913),
Law Reforms Ordinance (XII of 1972),
Civil Procedure Code (V of 1908)
|
| Sections |
202,
3(1),
O. XL, r. 1
|